By Faughn Economy • Workforce 0 Comments

MCITD Overview

The Mid-California International Trade District is strategically located in central California in Merced County, located just to the east and adjacent to Silicon Valley. Collocated with the Castle Airport, this location is advantaged by proximity and quick road and rail connections to San Francisco and the Bay Area and to key San Joaquin Valley urban markets such as Stockton, Modesto and Fresno. With immediate access to a labor shed of about 2.5M people and an extended labor shed of over 8M people, the MCITD is extremely well-positioned to accommodate a range of technical skill requirements.

On the site of a former Strategic Air Command Air Force Base, the MCITD is being transformed into a state-of-the-art master planned business environment for global business. The project site is a unique state of the art 2,000-acre multimodal industrial development that is designed to house about approximately 8 million square feet of modern technology-oriented industrial development.

The project’s underlying objective is to develop a next-generation eco-friendly Central California business environment due to its design, planned uses and streamlined connectivity to key supply chain points. Already home to over 60 tenants, including Google and the University of California-Merced, the project is designed to be a bustling hub of economic activity with about 10,000 people working onsite.

https://www.midcalitd.com/mcitd-overview/

By Faughn Economy • Quality of Life • Workforce 0 Comments

Studies focus on 3,400-acre development in Stanislaus County. Process raises some eyebrows

Salida’s 3,383-acre expansion plan is finally under environmental review to study traffic impacts, basic infrastructure needs, effects on wildlife, and the feasibility of city incorporation.

In 2007, the Salida Community Plan was an initiative proposed for a countywide vote, but county supervisors in a 3-2 decision that August approved the contents of the initiative, rather than putting it on the ballot. The plan included land use areas just north of Modesto capable of producing 27,800 jobs and 5,000 homes, possibly adding 15,000 residents.

By December 2007, the nation was in the grips of the Great Recession and a home mortgage crisis. The Salida Community Plan remained on the books during the recovery years. Today, there’s renewed interest in development, such as the 145-acre Scannell Properties project, proposing 2.5 million square feet of warehouses, distribution centers and manufacturing at the northwest corner of Kiernan Avenue and Dale Road.

County leaders agreed early last year that a programmatic environmental study was needed to consider the overall impacts of the Salida plan, before individual projects like Scannell can move forward.

In July, county supervisors approved a $900,000 agreement for Sacramento-based Ascent Environmental to prepare the overarching environmental study and also include a feasibility analysis on city incorporation of Salida. One purpose of the 2007 initiative was a larger tax base for Salida and fiscal self-sufficiency for the unincorporated town of 14,800 residents.

Questions of conflict of interest have arisen because Ascent also is preparing an environmental study looking at the specific impacts of the Scannell project.

County Counsel Thomas Boze said Tuesday there is no conflict. Ascent is capable of doing objective work for both studies. When a county hires outside consultants to prepare an EIR under the California Environmental Quality Act, the consultants are essentially assisting county staff members in completing the work, Boze said.

The developer is paying for costs of the study, but the county retains control over the document, Boze said. “The document is ours,” Boze explained. “The report has to be approved by the Board of Supervisors.”

In another legal question, the county contracted with Ascent for the Salida Plan EIR without first requesting proposals from consulting firms. A county staff report justified the decision, noting that overlapping technical assessments are needed for both the Salida Plan and Scannell project environmental studies, and Ascent was already conducting some of that work.

“It is not time or cost effective to bring in another consultant that will be duplicating work already being performed,” the county report said.

Sean McMorris of Common Cause California, a nonprofit focused on promoting accountability in government, said the downside of the RFP process for local governments is it takes more time. But the process serves to build trust with the public.

“The upside is: They can get the best deal and also can set parameters for participants in the RFP,” said McMorris, the transparency, ethics and accountability program manager for Common Cause.

McMorris said he didn’t think it’s illegal for the same consulting firm to prepare the programmatic EIR while handling the environmental work for a project in the Salida development area. But the public may think something is awry.

“We hope that people who do EIRs are ethical and don’t have predisposed outcomes before they come in,” McMorris said. “For the people who do these EIRs, it is a business. They want to have happy clients so the clients use them over and over again.”

Jessica Babcock, senior project manager for Ascent, said at a Salida Municipal Advisory Council meeting in late September the project EIR is being prepared under a three-party agreement with the county, Scannell Properties and Ascent Environmental. She said both of the environmental studies will contain unbiased information.

Study considers a variety of issues

The programmatic EIR is looking at larger planning considerations and ways to address overarching issues of developing the 3,383-acre Salida expansion.

Babcock said there’s no clear picture on whether to expand the wastewater treatment plant of Salida Sanitary District or build new facilities to serve Salida’s expansion area. The study also will consider needs such as a Sheriff’s Department satellite office combined with a fire station.

A number of “sub-consultants” are working on the program EIR, including: Fehr & Peers, doing traffic modeling; West Yost Associates, looking at water and wastewater infrastructure; and Economics & Planning Systems, analyzing incorporation feasibility.

County Supervisor Terry Withrow has said the Salida Community Plan could be a possible location for an innovation campus supporting the county’s bioindustrial initiative.

The Salida Plan, situated along the Kiernan Avenue traffic corridor, between Sisk and Dale roads, also could attract proposals for distribution centers, raising issues of air pollution and whether the lower pay scale of that industry is desirable for the county.

The community plan includes land designated for 5,000 homes and about 1,260 acres for industrial development, 490 acres for business parks and 280 acres of commercial uses.

Timeline for completing EIR

A draft environmental report should be ready for release in the spring. That will trigger the start of a 60-day period for public comments on the study’s findings. The final EIR, with responses to public comments, will be completed roughly a year from now.

The final study requires approval from the Board of Supervisors.

Katherine Borges, a Salida resident, said at the September Salida MAC meeting that new projects should not use septic tank systems because of the high water table in Salida.

Brad Johnson, a Salida municipal council member, asked skeptically if any other area of the county has a plan for 27,800 jobs.

To cover costs of the program EIR, the county will pull $682,785 from the General Fund, $291,220 from the Salida Planning Fund and $75,000 from the Salida Incorporation Study fund balance. As the Salida plan is developed over time, the county will collect fees from individual development projects to reimburse for the General Fund money.

https://www.yahoo.com/news/studies-focus-3-400-acre-003052285.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAJGYxEaZ_gWJQ3RpLw-YbMsCm6tp3MaCHz7rns3pFGQc4sFHwNOUHZpn3dPkKiQzQZjIrR3e9vqo9ceUL1TOrPsKKhCnYyGNGvjfcISKNp6e5JUos39dFkDRGyuebNfcEZvDtlG6Z1x5F0qiIYmYwnoBNOECA4sqrsTFtU8dLD0h

By Faughn Economy • Tourism 0 Comments

FAT continues on flight path of success with record 2.6M passengers

Whether it soared, took off, reached the clouds or any other air travel-related play on words, Fresno Yosemite International Airport once again set a record for passengers in 2024, just missing double digit growth. The airport that markets itself by its international airport code FAT was indeed full of passengers last year — about 2.6 million of them, up 9% from calendar year 2023. With new routes, major construction on a terminal expansion and other improvements, FAT continues to distinguish itself as an airport on the grow, officials said.

“FAT is more than just a place to catch a flight — it’s a key driver of jobs and economic growth for our region,” said Fresno Mayor Jerry Dyer in a statement. “With the opening of the newly expanded terminal on the horizon, I’m thrilled for what’s ahead as we continue to welcome travelers and show the world what Fresno has to offer.”

International passenger volumes experienced a substantial surge in growth. In 2024, a total of 411,575 passengers traveled between Fresno Yosemite International Airport and Mexico, representing a 27.5% increase compared to 2023.

Last month, Alaska Airlines launched non-stop seasonal service from Fresno to Guadalajara, Mexico, through Feb. 12. It joined existing carriers Aeromexico and Volaris in daily service to Guadalajara especially popular during the holidays.

“This major passenger growth trend at Fresno Yosemite International Airport is triggered by our airline partners recognizing and responding to the region’s demand for air service options from Fresno,” said Director of Aviation Henry Thompson. “Growing air service with more passengers choosing to fly Fresno and filling seats demonstrates to the airlines that more service is needed to meet demand.”

2024 air service and airport highlights

  • Return of daily United Airlines seasonal nonstop service to Chicago O’Hare International Airport (ORD) in May
  • Introduction of new daily nonstop flights to Hartsfield-Jackson Atlanta International Airport (ATL) with Delta Airlines in June
  • Launch of new Saturday nonstop service to Dallas Love Field (DAL) with Southwest Airlines in June
  • Increased frequency to Las Vegas (LAS) on Southwest Airlines to four daily flights from three flights in March through September and representing a 25% increase in the airline’s capacity to LAS
  • Cargo transported through FAT in 2024 totaled more than 20 million pounds. Cargo carriers FedEx and UPS upgauged from 757 aircraft to the 767 aircraft (both carriers) and A300s (UPS).
  • Placement of the final structural steel beam in October to support the largest airport development program in FAT’s history, including a new concourse wing with areas for shops and dining, expanded passenger screening checkpoint, a new Federal Inspection Station for international arrivals with an added waiting area for friends and family.

2025 FAT air service preview

Added capacity through FAT planned later this year includes:

  • Increased frequency to Las Vegas (LAS) on Southwest Airlines to four daily flights from three flights in March and representing a 25% increase in the airline’s capacity.
  • Added nonstop seasonal service to Portland International Airport (PDX) on Allegiant beginning May 22 through mid-August 2025 operating on Sundays and Thursdays.
  • Return of daily United Airlines seasonal nonstop service to Chicago O’Hare International Airport (ORD) in May.
  • Return of nonstop service with twice weekly service to Dallas Love Field (DAL) with Southwest Airlines June 7 through mid-August 2025.

https://thebusinessjournal.com/fat-continues-on-flight-path-of-success-with-record-2-6m-passengers/

By Faughn Economy 0 Comments

Kings County 2025 Forecast: Open for business, ready to fight

The Nov. 29 print edition of The Business Journal included economic forecasts for each of the four counties we cover. We will be sharing them throughout the week.

Kings County is rich in agriculture and manufacturing, with millions of pounds of cheese produced by suppliers large and small each day. Next year retail, hotels and even industrial are coming to a new development off Interstate 5. Cities including Hanford and Lemoore are positioning themselves to attract new businesses — and succeeding. Economic development leaders there have plenty of reasons to be optimistic about 2025.

But on the farm production side, the last few years haven’t been easy. In March 2023 the country and the world marveled at the return of the ancient Tulare Lake, the result of a historically wet water year. The lakebed cotton fields near Corcoran took the biggest hit, with the most recent crop report for 2023 showing annual crop receipts down 17%.

Kings County growers, led by the Kings County Farm Bureau and its Executive Director Dusty Ference, are currently engaged in a fierce legal battle with the state’s water board that could ultimately decide how much it will cost them to pump water from the ground.

All signs point to an eventful 2025 for Kings County.

Open for business

The Kings County Economic Development Corp. has been on the frontline of attracting new businesses to the area. The team meets with national site selectors, collaborates regionally and coordinates locally to put Kings County’s best foot forward.

“All projects and collaborative efforts strive for similar goals: to create jobs, to upskill employees, to expand capacity and to infuse resources into the local economy,” said Julieta Martinez, Kings EDC president and CEO, in the recently released 2024 annual report.

Fabio Ianni is the Kings EDC economic development manager. In the last year and a half, he has digitally and physically attended more than a dozen events across the country, meeting with site selectors, commercial real estate brokers and development decision makers. Broker missions took the Kings EDC to the Bay Area, Southern California and even Atlanta, Georgia, where they met with nearly 100 brokers and site selectors. From the Kings EDC perspective, everything is looking up for Kings County, including population, employment growth and productivity in agriculture and manufacturing.

The pipeline

Truck stops and fueling facilities with retail are hot, with Maverik building a new facility in Lemoore. It includes a 6,000 square-foot convenience store and drive-thru restaurant. Construction workers will be busy in Lemoore working on the new Visual Arts and Applied Science instructional building at Lemoore College. At two stories and more than 44,00 square feet, it is expected to open in spring 2026. Tennessee-based Helena Agri-Enterprises, LLC, is building a new fertilizer and crop input products storage facility in Lemoore that should be completed before the end of 2025.

The long-anticipated Jackson Ranch development, and its master-planned 415 acres of retail, hotels and industrial, will finally get its wings in 2025. The first businesses there (a Chevron and Shell fueling station) are expected to open in Q1 — maybe even within weeks. Phase 1 plans include restaurant pads and a pair of hotels. Jackson Ranch is located on Utica Avenue in Kettleman City along Interstate 5 — one of the state’s busiest freeways.

“It’s a very strategic location,” Ianni said.

There are also milestones coming in the new year. Kings County agricultural powerhouse J.G. Boswell will celebrate its 100th anniversary in business in the second quarter of 2025. The family-owned and operated company specializes in the production, processing, and marketing of cotton, tomatoes and more.

Courthouse to tap room

One of the City of Hanford’s historical buildings has found a new purpose with the council’s decision earlier to sell the original courthouse building from 1896 to BarrelHouse Brewing Co. for $1. Though based in Paso Robles, BarrelHouse Brewing has made itself at home in the Valley with taprooms in Visalia and Fresno’s River Park. The Hanford location would be a Kings County homecoming, as BarrelHouse co-owners Jason Carvalho and Kevin Nickell were both raised in Lemoore.

“We’re a gathering place for friends and family,” Carvalho said earlier this month during a council meeting. “We want to be the spot that you can just come after work, bring your friends and family, have a good time. And that’s something that’s missing in Hanford.”

Nickell said their goal is to have a Barrelhouse business on the Courthouse’s top floor along with other tenants in the building. Renovation work is expected to continue through to a possible 2026 opening.

Neat streets

The East Lacey Boulevard Corridor Improvement Project is moving forward in Hanford — currently in the design phase, said Brian Johnson, City of Hanford community relations manager. Final construction documents scheduled to be completed soon. The $7.3 million project is expected to turn the “gritty industrial road to a multi-use, landscaped street that will open up opportunities for residential and commercial development,” reported the Hanford Sentinel in August. Construction could begin next year. Hanford also recently passed a 1% sales tax — the first in the City’s history, said Johnson. This new revenue stream will allow the City to maintain and improve essential services, which they hope will contribute to the City’s overall economic growth.

“You don’t get many developers that come into a town they want to invest in that’s not willing to invest in itself,” said Public Works Director Russ Sterling.

Farm bureau fight

The Kings County Farm Bureau is fighting a designation of the Tulare Lake Subbasin as under probation by the State Water Resources Control Board. As part of the state’s Sustainable Groundwater Management Act (SGMA), growers in the Tulare Lake Subbasin would have to pay $20 per acre foot of water pumped as part of their probation. The Farm Bureau scored a legal victory in September when Kings County Superior Court Judge Kathy Ciuffini granted a preliminary injunction against the State Water Board.

“Today’s ruling highlights the validity of our claims and showcases our likelihood to win in court in the future,” Dusty Ference, executive director of the Farm Bureau, said in a statement.

It has been an expensive effort for the Farm Bureau, with more than $257,000 in legal fees to date. On Jan. 10, 2025, the Farm Bureau will be in court for a second case management system. A trial date could be set for later in the year. Water agencies across the state are watching the legal matter for its implications for the implementation of SGMA.

https://thebusinessjournal.com/kings-county-open-for-business-ready-to-fight/

By Faughn Economy • Tourism 0 Comments

Stockton Metro adding flights to Denver in 2025

Things are looking up for passenger flights at Stockton Metro Airport. Allegiant Airlines will launch twice weekly service to Denver International Airport on May 14, 2025. Denver is the largest airport in the United States. It allows passengers to connect to other flights or use the airport rail line to go directly to downtown Denver. Allegiant is also expanding the number of flights to Las Vegas and Phoenix from Stockton in mid-2025. Weekly flights to Harry Reid International Airport in Vegas will increase to nine times per week. Stockton flights to Sky Harbor International Airport in Phoenix will be bumped up to three times a week.

“We are pleased to introduce this new service and provide the community with a new, convenient, and affordable non-stop travel destination,” said Richard Sokol, Director of the Stockton Metropolitan Airport.

“This is an exciting step forward in the airport’s continuing effort to bring more travel options to our region.”

And it could be just the start of increased passenger service out of Stockton. Stockton Metro’s position as the fourth major airport in the Bay Area — and regional growth that is pushing up household incomes — is drawing interest from airlines interested in possibly operating connector passenger service. San Joaquin County Supervisor Tom Patti indicated several months ago Spirit, United, and American are exploring potentially having flights in and out of Stockton. If it happens, it would be a significant development for the Northern San Joaquin Valley with 1.6 million residents and counting. Not only is the region consistently among the top four fastest growing areas in the state, but demographics are showing significant jumps in the household income of those moving into the area from west of the Altamont Pass.

Given Manteca’s northern most city limits at Roth Road and Airport Way is within four miles of the Stockton Metro terminal, whatever happens at the county owned airport will have a significant impact on Manteca. The Bay Area is served by San Francisco, and Oakland airports that are significantly more congested when it comes not just to passengers accessing them but also with the number of flights. Stockton has steadily grown its Bay Area profile in the past 20 years.

Initially, it was upwards of a dozen corporate jets being located at Stockton that were owned by big tech companies in the Silicon Valley during a time period when flight times were limited out of San Jose.

Eventually, they were able to shift back to San Jose.

Then in 2016, Amazon started its daily large cargo jet movements to Stockton. In 2020, the online retailer expanded their footprint at Stockton to handle up to eight large cargo jets a day. Amazon operates fulfilment centers near the airport including three in Tracy, two in Stockton, and one in Manteca on Airport Way. There are also Amazon fulfillment centers in Patterson and Turlock.

Before the pandemic, United operated connector flights from Stockton to Los Angeles.

“This is very exciting news for our County and region,” said Miguel Villapudua, Chair of the San Joaquin County Board of Supervisors.

“Between the Board’s $26 million investment earlier this year and Airport Director Sokol’s tireless work to realize the potential of SCK, this is only the beginning of great things to come.”

https://www.mantecabulletin.com/news/local-news/stockton-metro-adding-flights-to-denver-in-2025/

By Faughn Economy 0 Comments

City of Modesto Bond Rating Upgrades: Signals Financial Strength and Stability

 A stable outlook, and a bond rating upgrade, was assigned to the City of Modesto which reflects the City’s commitment to strong financial management principles.  Moody’s is one of the United States big three credit rating agencies (the other two being S&P and Fitch) for municipal government finance that defines credit ratings for the government bonds.

Moody’s recently conducted a bond credit rating review for the Water bonds and the Lease Revenue bonds (funded by the General Fund and Successor Redevelopment Agency) which resulted in the City receiving an upgrade to our current bond ratings. For the Lease Revenue bonds, the City received a bond rating upgrade from A1 to Aa3; the first upgrade since 2018.  For the Water bonds the City received a rating upgrade from an Aa3 to Aa2; this bond rating has not been upgraded since 2008.

The Lease Revenue Bonds upgrade is evaluated based on the financial review of the City’s General Fund which factors in the recent voter approved Measure H 1% local sales tax.  The City’s substantial increase in its reserves both from the General Fund Emergency Reserves and the newly received Measure H fund reserves demonstrates a strong commitment to a healthy financial foundation.  The City was able to show financial stability and economic growth despite rising inflation and ongoing supply chain challenges impacting both the Water Fund and General Fund.

The Water bonds upgrade was based on the results of the strong debt coverage ratio maintained for the Water Fund and healthy fund reserves.  This upgrade will further improve the City’s bond credit rating score with the benefit of obtaining better interest rates for the future financing needs of the City.

This accomplishment was made possible by the dedicated actions of the Mayor and the City Council to improve our financial standing through the years despite many difficult decisions. Prior to the passing of Measure H, this Council was faced with heavy implications of lost revenue and increasing costs.  Their commitment never wavered in ensuring the financial stability of the City for the future. The City of Modesto is now seeing the positive impacts of some difficult decisions that were made and that have paved the way for financial flexibility for years to come.

https://www.modestogov.com/CivicAlerts.aspx?AID=1561

By Faughn Distribution • Economy • Renewable Energy 0 Comments

Port of Stockton gets $110 million grant for zero-emissions operations

The Port of Stockton has been awarded a $110.5 million grant to reduce air pollution in what a local congressman called the largest federal investment in its history. U.S. Rep. Josh Harder (D-Tracy) said the funds will help make Stockton the first small port in the nation with zero-emissions terminal operations.

The grant is intended to be used for electric cargo handling equipment, solar power generation and battery storage and to provide shore power to ships when they tie up at wharfs, the U.S. Environmental Protection Agency said Tuesday. The grant also will go toward training workers in maintaining the new high-tech equipment.

“These funds will significantly decrease freight-related emissions in the Central Valley by transitioning more than 90% of our cargo-handling equipment to zero emissions,” Stockton Port Director Kirk DeJesus said in a statement.

The grant will help burnish the Port of Stockton’s environmental efforts, which sometimes draw the ire of conservationists. In September, for instance, several environmental groups sued the port alleging a planned project to produce hydrogen from fossil methane will create air pollution and greenhouse gases that lead to climate change.

Despite environmental concerns, the Port of Stockton, however, is a regional economic powerhouse. As the fourth busiest port in the state, the complex accounts for more than 10,000 jobs, officials say. Stockton’s grant is among 55 to be distributed at ports around the nation. The investments, totaling nearly $3 billion, were funded under the Biden administration’s Inflation Reduction Act.

Harder said he worked hard to bring the grant to Stockton.

“This means jobs, cutting-edge technology and better air quality for our kids,” said Harder, a Stockton-based Democrat and member of the House Appropriations Committee.

Other California ports receiving grants included Redwood City, Oakland, San Francisco, Oxnard, Los Angeles and San Diego. One goal for the grants is to help reduce pollution at ports that have homes nearby, which is certainly the case in Stockton. Several neighborhoods are situated on the north side of the San Joaquin River across from Rough and Ready Island, home to the Port of Stockton.

“While ports, of course, serve an essential role for moving goods, the costs that they bring in terms of pollution and impacts on overburdened communities must be confronted,” EPA Pacific Southwest Regional Administrator Martha Guzman said in a statement.

Replacing diesel-powered freight equipment with zero-emission technology will “reduce air pollution, improve health outcomes in nearby communities, and advance the campaign to tackle climate change,” Guzman said.

By Faughn Economy 0 Comments

Annexation of Virginia Smith Trust Land is Finalized

The City of Merced is pleased to announce that the Virginia Smith Trust (VST) annexation has been officially recorded and is now complete. This marks a significant step forward in the city’s long-term growth plans, as 650 acres of land just south of UC Merced have now been annexed.

The Local Agency Formation Commission (LAFCo) gave its final approval to the annexation, following a unanimous vote by the Merced City Council earlier this year. The VST property will be developed into an exciting new part of our community, transforming into a vibrant area with new homes, apartments, retail and commercial spaces, parks, and essential transportation routes.

“This has been a multi-year effort involving collaboration with multiple agencies,” said City Manager Scott McBride. “We received notice that the VST annexation is now officially recorded. This project will help provide affordable housing and offer direct support to UC Merced. We are already seeing interest from private developers eager to work in this area.”

Now that the annexation is final, the focus shifts to processing the necessary entitlement applications for maps and permits to begin construction. The development will also create revenue that will directly support local students, as it funds scholarships from the Virginia Smith Trust. Established in 1975, the Trust has awarded nearly $7 million in scholarships to more than 3,500 Merced students. 

“The legacy of Virginia Smith and her brother Cyril will impact future generations of Merced County students,” said Merced County Superintendent of Schools, Dr. Steve Tietjen, who also serves as an advisor to the Trust. “It is now up to us to maximize the potential of this gift.”

The Virginia Smith Trust has played a key role in Merced’s development over the years. In the late 1990s, a large portion of the Trust’s land was donated for the creation of UC Merced, which has since become one of the nation’s top-ranked universities. Another section of land was preserved for environmental conservation, protecting vernal pools that provide a habitat for endangered species.

The City of Merced is thankful for the continued support of the City Council and the efforts of all those involved in making this project a reality. The VST annexation opens the door to future growth and development that will benefit both the community and UC Merced for years to come.

https://www.cityofmerced.org/Home/Components/News/News/1832/17

By Faughn Economy • Energy • Renewable Energy 0 Comments

NAS Lemoore plans lease of 425 MW solar farm and construction of data center

The US Navy is working on a lease of 920 acres of land around the Naval Air Station Lemoore base to a Massachusetts company who would construct a large 425 MW solar farm and build a data center the size of three Costcos on the base campus.

This is the third run to lease surrounding land at the base by the government to produce energy that could help protect the facility power supply and offer resiliency. Similar projects were proposed in 2015 and 2023 but no construction ever happened.

Now there is a new investor who could build this project that now includes a 600,000 square foot power-hungry data center — one of hottest commodities on Wall Street these days.

A draft environmental document (Supplemental Assessment-SEA) published in June says a new lessee — Ameresco — could sell the generated power to regional customers, including the onsite data center. In return, the lessee would provide in-kind consideration in the form of energy generation to the Navy that would allow NAS Lemoore to work toward meeting both Navy and Department of Defense energy resiliency objectives. The project would include EV charging stations, a battery storage facility or BESS, backup generation/microgrid and related infrastructure.

A data center is a facility used to house computer systems and associated components, such as servers, storage systems, networking equipment, and other hardware. It serves as a centralized location for organizations to store, process, manage, and distribute large amounts of data. Data centers are

designed to provide a controlled environment with optimal conditions for the reliable operation of the computer systems. They have redundant power

supplies, cooling systems, and backup generators to ensure uninterrupted operation. They also employ various security measures, such as access controls, surveillance systems, and fire suppression systems, to protect the valuable data and equipment.

The data center would be connected to high-speed long haul fiber optic network for receiving and transmitting data. The facility would be primarily powered by on-site solar and battery storage for most of the year and would be connected to grid power for periods of low solar energy production.

The data center would be secured by fences and gates and only accessible by authorized personnel or deliveries. Vehicles onsite would include employee

vehicles, delivery trucks and service vehicles. During operations, the project site would have 20 employees, with staffing seven days per week, 24 hours per day.

A key factor that contributes to the rapid expansion of data center construction in the U.S. is digital transformation. As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed, says one analysis.

Federal incentives have promoted investments. There are no data centers in Kings or Tulare counties.

Approximate Construction Timeline

Construction of the overall project would be expected to begin in 2024, says the document, with data center operations most likely commencing in 2025. The project can be constructed in single or multiple phases that are determined by the data center customer. Data center development typically can include up to five phases of approximately 20-25 MW increments that may extend construction time through 2027.

History of lease

The document is a Supplemental Assessment because the 2016 environmental study led to a lease of lands around the base that is still in place. NAS Lemoore encompasses 18,784 acres of Navy-owned land.

On Oct. 12, 2016, approximately 930 acres (i.e., Project Site) were leased to Liberty CO LLC for a term of 37 years (expiring Oct. 31, 2053). The existing lease with Liberty CO LLC was then transferred to Bright Canyon Energy on Feb. 14, 2019. In January 2024, Bright Canyon was acquired by Ameresco, and thus, as of 2024, Ameresco is now the current lessee of the undeveloped land.

Under the Navy’s 2024 Proposed Action, the existing lease would be modified to allow the lessee to construct and operate additional resilient energy systems within the leased 930-acre Project Site.

The existing lease allows the lessee to construct and operate up to a 125 MW solar PV system and associated infrastructure. The changes proposed as part of the 2024 Proposed Action would include the construction and operation of an additional 300 MW of solar PV systems (for a total of up to 425 MW) and an option to construct a data center, EV charging stations, BESS, backup generation/microgrid, and related infrastructure.

Ameresco, Inc. completed the acquisition of Clean Energy Asset from Bright Canyon Energy for $76.8 million, says their website.

Ameresco develops, owns and operates renewable-energy projects across the United States, Canada and Europe. In California, its projects include battery storage installations, including a $1.2 billion, 537.5-MW project that was delayed due to COVID-19 lockdowns and resulted in the company declaring a force majeure in April 2022. Ameresco was contracted to construct the battery storage systems for SCE at the utility’s substations in Ventura and the Los Angeles area.

The environmental document says once construction starts, it will employ about 400 construction workers.

A final SEA is expected before work begins.

https://hanfordsentinel.com/business/energy/nas-lemoore-plans-lease-of-425-mw-solar-farm-and-construction-of-data-center-john/article_daaafe54-90af-11ef-a013-3f506e5c207b.html

By Faughn Economy 0 Comments

INVESTING IN AMERICA: Merced County wins funds for Inland Port

WASHINGTON – The U.S. Department of Transportation (DOT) is awarding $49.46 million in grants to 45 local, regional, and state public entities through the Innovative Finance and Asset Concession Grant Program (IFACGP), made possible by President Biden’s Bipartisan Infrastructure Law. More than 70 percent of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives, including projects that support the Biden-Harris Administration’s efforts to boost housing supply and lower costs.

“Through the bipartisan infrastructure package, the Biden-Harris Administration is helping cities, states and transit agencies develop projects on underused properties—including tens of thousands of housing units over the next decade,” said U.S. Transportation Secretary Pete Buttigieg. “The grants we’re announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets, and get more housing and other public benefits and services completed more quickly.”

The program makes $100 million available over five years to help public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, e.g., the Build America Bureau’s Transportation Infrastructure Finance and Innovation Act (TIFIA) low-cost loan program.  Awards can be up to $2 million, with no match required for the first million dollars.

“Today’s announcement is what the Investing in America Agenda is all about,” said Acting Undersecretary of Transportation for Policy Christopher Coes. “Not only will this funding lead to greater access, opportunity, and economic growth through good transportation infrastructure, but it will catalyze the development of safe, affordable housing in communities across the country.

“This is a transformative program that is focused on unlocking value from underutilized assets,” said Build America Bureau Executive Director Morteza Farajian. “The goal of this innovative program is to facilitate partnerships between private and public entities to deliver community benefits in a more efficient and cost-effective manner. The selected recipients represent a wide range of projects that are good candidates for public-private partnerships.”

The Build America Bureau administers the financing program, which provides technical assistance and expert services grants. View the interactive map to learn more about the selected projects. Several examples of grant recipients include:

  • Capital Metro (CapMetro) in Austin, Texas, will use $1 million in IFACGP funding to explore an Equitable TOD pilot site. Building off their experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.
  • Merced County, California is producing a blueprint to modernize and expand operational capacity of the Castle Commerce Center Inland Port, a 1,912-acre multi-modal freight transportation hub located less than 100 miles from the ports of Oakland and Stockton.   With $450,000 of IFACGP funds, the County will partner with expert advisors to identify financing and private sector investment opportunities.
  • The City of New Rochelle, New York, will use $1 million in IFACGP funds to scan city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities.
  • Rhode Island Public Transit Authority (RIPTA) is working to reimagine its Kennedy Plaza outdoor bus hub into a modern mixed-use development that includes a new transit center, housing, and commercial development. With $2 million from IFACGP funding, and $1 million contributed by RIPTA, this $3 million study will position RIPTA to engage private sector developers to deliver the project.

The technical assistance grant recipients will use the funding to enhance their organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling, and other activities considering innovative finance and delivery, including asset concessions. The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.

Today’s IFACGP awards are the latest action by the Biden-Harris Administration to explore innovative finance and delivery options for public entities, create more housing to lower costs for Americans, and support communities with technical assistance. In addition to today’s announcement:

  • Last month, DOT’s Build America Bureau released new guidance to help potential borrowers access TOD financing, including FAQs and recorded webinars.
  • Earlier this year, DOT announced funding for 112 under-resourced communities to receive hands-on assistance to secure federal infrastructure funding and then deliver on those projects.
  • Last fall, the Biden-Harris Administration announced new actions to support the conversion of high-vacancy commercial buildings to residential use through new financing and technical assistance.

The new IFACGP program joins the Rural and Tribal Assistance Pilot Program, Regional Infrastructure Accelerators Program, Thriving Communities Program, and other technical assistance opportunities at DOT that seek to ensure communities have the tools they need to access federal funding and financing for transformative infrastructure projects. Additional DOT technical assistance resources can be found on the DOT Navigator.

https://www.transportation.gov/briefing-room/investing-america-biden-harris-administration-continues-action-increase-housing