Port of LA

6. RESOLUTION NO. ____________ - APPROVE ORDER RESETTING COMPENSATION\nUNDER PERMIT NO. 708 WITH KINDER MORGAN TANK STORAGE TERMINALS, LLC\nSummary: Staff requests approval of the Order resetting compensation under Permit No. 708\ngranted to Kinder Morgan Tank Storage Terminals, LLC (Kinder), formerly GATX Tank Storage\nTerminals Corporation (GATX), for the use of 13.46 acres of Los Angeles Harbor Department\n(Harbor Department) land and wharf located at Berths 118-119. The proposed compensation reset\nis for the five-year period of April 14, 2023, through April 13, 2028. Under the proposed\ncompensation reset Order, the annual minimum land rent will be adjusted commencing April 14,\n2023, through April 13, 2028, to $2,188,252.50 (payable quarterly in an amount of $547,063.13).\nThe annual minimum land rent is based on waterfront land value of $50.00/sf with a 10 percent rate\nof return based on the Harbor Department’s rate of return policy for unimproved land. Additionally,\na 50 percent discount for subsurface lands is applied to any subsurface parcels. In addition to the\nannual minimum land rent, Kinder will continue to pay all tolls and charges pursuant to Port of Los\nAngeles Tariff No. 4. The applicable five-year compensation reset was due on February 1, 2024,\nconsequently, Kinder has agreed and will be assessed the compensation reset retroactively to April\n14, 2023.\nRecommendation: Board to resolve (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 Order resetting compensation under Permit No. 708 with Kinder\nMorgan Tank Storage Terminals, LLC; (3) authorize the Board Secretary to attest to the Order\nresetting compensation under Permit No. 708; and (4) adopt Resolution No. ____________ and\nOrder No. ___________.\nInformation Technology