Los Angeles

Port of LA

May 11, 2023 Item #3

Agenda Item 3

3. RESOLUTION NO. ____________ - APPROVAL OF FOREIGN-TRADE ZONE\nGENERAL PURPOSE OPERATING AGREEMENT BETWEEN THE CITY OF LOS\nANGELES HARBOR DEPARTMENT AND NIPPON EXPRESS USA INC., FTZ 202, SITE\n61\nSummary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement\n(Agreement) between the City of Los Angeles Harbor Department (Harbor Department) and\nNippon Express USA Inc. (Nippon Express) to operate its facility within FTZ 202, Site 61, located\nat 1901 W. Pacific Coast Highway, Long Beach, California. This is a 10-acre property including\na warehouse and offices located approximately 6 miles north of the Port of Los Angeles.\nCurrently, Site 61 is managed by Nippon Express and operates its warehouse under FTZ\nprocedures as a multi-usage site. The Harbor Department, as the FTZ grantee, establishes\nGeneral Purpose Operating Agreements with FTZ operators to oversee their FTZ operations.\nThe proposed Agreement is for a term of five years with three, five-year renewal options. If the\nproposed Agreement is approved, the Harbor Department will receive $7,750 annually from\nNippon Express (per FTZ Tariff No. 2).\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed action is administratively exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City\nCEQA Guidelines; (2) approve the proposed Foreign-Trade Zone Operating Agreement between\nthe Harbor Department and Nippon Express; (3) direct the Board Secretary to transmit the\nproposed Foreign-Trade Zone Operating Agreement to the Los Angeles City Council for\napproval pursuant to Section 373 of the Charter of the City of Los Angeles and Section 10.5 of\nthe Los Angeles Administrative Code; (4) authorize the Executive Director to execute and the\nBoard Secretary to attest to the proposed Foreign-Trade Zone Operating Agreement; and (5)\nadopt Resolution No.____________.\nRegular Items (4 – 5)\nCargo Marketing