World Logistics Center Project/Settlement Agreement: Developer Agrees to $47 Million in Solar/Electric Vehicle Upgrades

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

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The developer of a 40.6 million square foot California development project for a large-scale logistics operation (“World Logistics Center Project [Project]”) and various environmental/community groups entered into a Settlement Agreement (“Agreement”) requiring certain actions related to energy use.

The developer is:

  • Highland Fairview Properties,
  • HF Properties,
  • Sunnymead Properties,
  • Theodore Properties Partners,
  • 13451 Theodore, LLC, and
  • HL Property Partners (collectively, “Highland Fairview”)

The environmental/community groups that are signatories to the Agreement include:

  • Center for Community Action and Environmental Justice,
  • Center for Biological Diversity,
  • Coalition for Clean Air,
  • Sierra Club, and
  • San Bernardino Valley Audubon Society (collectively, “CBD”)

The Project will be located on approximately 2,610 acres of what is described as largely vacant land in the Rancho Belago area of the City of Moreno Valley, California. It has been described as potentially being one of the world’s largest master-planned warehouse developments.

Various environmental/community groups filed three different lawsuits since 2015 challenging various aspects of the Project. The organizations had expressed concerns about the potential environmental impacts of the Project.

The Agreement provides that Highland Fairview will:

  • Advance electrification of logistics equipment from trucks to forklifts, including providing funds to aid in purchasing 680 new electric trucks, which must be used within the state so local residents receive air quality relief.
  • Provide up to $12.1 million for heavy-duty electric trucks.
  • Deliver a thousand $1,000 EV grants for Moreno Valley residents to purchase electric cars, in addition to other zero-emission mobility projects in a new program worth $1.1 million, and install 1,080 EV chargers for passenger vehicles on site.
  • Increase Moreno Valley’s solar power by installing additional rooftop solar on warehouse facilities.
  • Provide up to $5 million in air filtration and noise mitigation solutions for the most impacted homes near the facility, in addition to building berms, screens, walls and large setbacks around buildings to reduce the warehouse complex’s impacts on nearby communities.

A copy of the Agreement can be downloaded here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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