environmental remediation
Environmental Remediation
Structure of Environmental Remediation Sources
United States Army Contribution
The United States Army contributed $13 million towards the environmental cleanup of the Base. The Port and Agency used $3.4 million to purchase a cost-cap and pollution legal liability environmental insurance policy from Chubb Insurance Group, and the remaining $9.6 million for the initial cleanup of the Base. As this amount has been spent to date, it is not reflected in the Prologis/CCIG Oakland Global budget.
Chubb Insurance Policy
The $30 million cost cap environmental insurance policy kicks in when expenditures towards remediation of the Base reach $20,992,552 or the "Attachment Point". After this amount has been reached, Chubb will cover all eligible expenditures up to a $30 million limit. The difference between the $9.6 million mark and the $20.99 million mark will be covered by "Gap" funding provided by the Redevelopment Agency and the Port of Oakland in $500,000 tranches from each organization. The rules regarding the expenditure of these funds are spelled out in the Amended and Restated Memorandum of Agreement, enacted between the Agency and the Port in 2008. The current total of expenditures towards remediation of the Base equals approximately $11 million, and thus we are in the "Gap" financing period.
Closure vs. Development
As explained earlier, greater remediation will be necessary to develop the property than is required for obtaining regulatory closure at the various sites. Prologis/CCIG Oakland Global has put together a draft budget for such remediation, but much of the funding is yet to be identified, particularly in the West Gateway Area.
Additional Environmental Remediation Funding
It is proposed that after the local Joint Remediation Account funds and the Chubb Insurance Policy remediation funds have been exhausted, the federal government might help to complete the cleanup of the Base. Please see the chart below for a breakdown of potential environmental remediation funding sources.
Structure of Environmental Remediation Sources
United States Army Contribution
The United States Army contributed $13 million towards the environmental cleanup of the Base. The Port and Agency used $3.4 million to purchase a cost-cap and pollution legal liability environmental insurance policy from Chubb Insurance Group, and the remaining $9.6 million for the initial cleanup of the Base. As this amount has been spent to date, it is not reflected in the Prologis/CCIG Oakland Global budget.
Chubb Insurance Policy
The $30 million cost cap environmental insurance policy kicks in when expenditures towards remediation of the Base reach $20,992,552 or the "Attachment Point". After this amount has been reached, Chubb will cover all eligible expenditures up to a $30 million limit. The difference between the $9.6 million mark and the $20.99 million mark will be covered by "Gap" funding provided by the Redevelopment Agency and the Port of Oakland in $500,000 tranches from each organization. The rules regarding the expenditure of these funds are spelled out in the Amended and Restated Memorandum of Agreement, enacted between the Agency and the Port in 2008. The current total of expenditures towards remediation of the Base equals approximately $11 million, and thus we are in the "Gap" financing period.
Closure vs. Development
As explained earlier, greater remediation will be necessary to develop the property than is required for obtaining regulatory closure at the various sites. Prologis/CCIG Oakland Global has put together a draft budget for such remediation, but much of the funding is yet to be identified, particularly in the West Gateway Area.
Additional Environmental Remediation Funding
It is proposed that after the local Joint Remediation Account funds and the Chubb Insurance Policy remediation funds have been exhausted, the federal government might help to complete the cleanup of the Base. Please see the chart below for a breakdown of potential environmental remediation funding sources.
JOB GROWTH • ECONOMIC VITALITY • GLOBAL COMPETITIVENESS • ENVIRONMENTAL STEWARDSHIP
SOURCES
United States Army:
Redevelopment Agency:
Port of Oakland:
Chubb Insurance Group:
Federal:
Unidentified:
TOTAL:
$ 9.6 million (not included)
$ 5.7 million
$ 5.7 million
$30 million
$ 0.6 million
$23.5 million
$ 75.1 million ($65.6 million w/o Army)
