Los Angeles

Port of LA

January 26, 2023 Item #4

Agenda Item 4

4. RESOLUTION NO. ____________ - APPROVAL OF THE FOREIGN-TRADE ZONE\nOPERATING AGREEMENT BETWEEN THE CITY OF LOS ANGELES HARBOR\nDEPARTMENT AND PORT LOGISTICS GROUP, LLC, FTZ 202, SITE 42\nSummary: Staff requests approval of a Foreign-Trade Zone (FTZ) Operating Agreement\nbetween the City of Los Angeles Harbor Department (Harbor Department) and Port Logistics\nGroup, LLC (PLG), to operate its facility within FTZ No. 202, Site 42, located at 501 S. Cheryl\nLane, City of Industry, CA 91789. The 20.57 acre property includes a warehouse and office\nspace, approximately 50 miles north of the Port of Los Angeles. In January 2022, Ryder\nSystems, Inc., acquired Port Logistics Group, Inc. and changed the legal entity to an LLC. Port\nLogistics Group, Inc., worked under Operating Agreement 17-3487. With this new ownership\nand name change, it is recommended a new Operating Agreement be executed. The proposed\nAgreement is for a term of five years with three, five-year renewal options. If the proposed\nAgreement is approved, the Harbor Department will receive $7,750 annually from PLG (per FTZ\nTariff No. 2).\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the administratively exempt from the requirements of the California\nEnvironmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA\nGuidelines; (2) approve the proposed Foreign-Trade Zone Operating Agreement between the\nCity of Los Angeles Harbor Department and Ports Logistics Group, LLC; (3) direct the Board\nSecretary to transmit the proposed Foreign-Trade Zone Operating Agreement to the Los\nAngeles City Council for approval pursuant to Section 373 of the Charter of the City of Los\nAngeles and Section 10.5 of the Los Angeles Administrative Code; (4) authorize the Executive\nDirector to execute and the Board Secretary to attest to the proposed Foreign-Trade Zone\nOperating Agreement; and (5) adopt Resolution No.____________.\nSPECIAL MEETING AGENDA\nRegular Items (5 & 6)\nEnvironmental Management