Historic Agreement Reached to Purchase
San Francisco Bay Salt Ponds
May 29, 2002
San
Francisco - A landmark public-private partnership to purchase
16,500 acres of salt ponds along the San Francisco Bay shore and Napa River
and turn them into wetlands and tidal marshes was announced today by U.S.
Senator Dianne Feinstein, California Governor Gray Davis and Secretary of
Interior Gale Norton.
"This
historic Framework Agreement sets in the motion the largest wetlands
restoration undertaken in California history," said Senator
Feinstein, who worked closely with Federal, State, philanthropic foundations
and Cargill officials to reach an agreement.
"This
Agreement provides for acquiring 16,500 acres in the San Francisco Bay and
Napa County from Cargill for $100 million. Also, when Cargill ceases salt
production on 8,000 acres around the Newark plant, this property would
revert to the public for wetland restoration."
"This
agreement would not have happened unless four deeply committed foundations
came together with the State and Federal governments. By forging a
public-private partnership, we have found a creative way to put together a
project that will benefit generations of Californians to come and may serve
as a model for future environmental projects."
"I want to
thank Governor Gray Davis and Interior Secretary Gale Norton for showing the
leadership for helping make this agreement possible. And a special note of
thanks to the Hewlett Foundation and its President Paul Brest, the Moore
Foundation and President Lew Coleman and the Packard Foundation and
President Richard Schlosberg and the Goldman Fund and its President Richard
Goldman for their commitment to the environment."
"The goal
is not only to buy the land, but to restore it into tidal and seasonal
wetlands. Therefore, this agreement also includes a five year stewardship
and restoration planning period. The Hewlett, Moore and Packard Foundations
are providing $6.33 million each for land acquisition and $5 million each
for the stewardship and restoration planning effort. The Goldman Fund is
providing another $1 million for acquisition."
The full funding
package includes:
- $100 million for
acquisition
- $8 million will be
provided by the U.S. Fish and Wildlife Service (exiting funds)
- $25 million will come from
the California Wildlife Conservation Board (existing funds)
- $47 million will be
provided by the State of California
- $6.33 million from the
Hewlett Foundation
- $6.33 million from the
Moore Foundation
- $6.33 million from the
Packard Foundation
- $1 million from the
Goldman Fund
- $35 million for five years
of initial stewardship and restoration planning with $15 million to be
provided by the Hewlett, Packard and Moore Foundations ($5 million each)
and $10 million each to be provided by Federal and State governments
over five years.
- The U.S. Fish and Wildlife
Service and California Department of Fish and Game will own and manage
the properties under agreed upon principles. Initial stewardship
includes costs to optimize the available resources while long-term
restoration planning is underway. These include the cost to design,
install, operate and maintain new water control structures to prevent
the future accumulation of salts; levee maintenance; pumping costs;
environmental permitting; restoration monitoring and collaboration.
- The California Coastal
Conservancy's San Francisco Bay program will lead a planning and public
information effort to craft a widely supported, scientifically sounds
restoration plan, estimating the costs of restoration, identifying
potential sources of funding, outlining an implementation schedule,
preparing environmental documents and obtaining initial federal, state
and local permits for restoration.
"Members
of the environment community have also helped move this proposal ahead and
the project envisions their active participation in the restoration planning
process. Their expertise and efforts are essential in completing our
restoration objective," Senator Feinstein said.
"I also
would like to thank Cargill, a company that has operated salt making
operations in the Bay since 1978 and is the latest salt making company in a
long line stretching back to the gold rush days 150 years ago. Cargill has
agreed to a significantly below market sale; the donation of 8,000 acres of
salt making rights in the future; and to do any required clean up as
determined by the regulatory agency. By agreeing to this, Cargill is clearly
doing a major public good and the company deserve deep appreciation."
Summary of
the Framework Agreement
- The Framework Agreement
establishes that Cargill will sell 16,500 acres in the South San
Francisco Bay and along the Napa River for $100 million to the Federal
and State governments.
- The $100 million payment
includes $53 million payable at closing on December 16, 2002 and $47
million when the ponds achieve the clean-up standard.
- Of the first $53 million,
the State will pay $25 million, the Federal government $8 million and
the Foundations $20 million. The State will also provide the remaining
$47 million after closing.
- The Agreement would
exclude the Redwood City plant site, Pond A-18, which is being purchased
by San Jose and is adjacent to their wastewater treatment plant; and a
ditch adjacent to Moffett Field, which was contaminated by the
Department of Defense.
- Title for the property
would transfer to the Federal and State governments at closing, but the
land would not transfer until Cargill certifies that each pond has met
the clean-up standard promulgated by the California Regional Water
Quality Control Board.
- A separate standard will
be worked out in the Phase-out Agreement between Cargill and the
California Department of Fish and Game with regard to the Napa parcel,
because the water on that property will not be discharged into the Napa
River.
- The State and Federal
Agencies have agreed to accept Operation and Maintenance costs for most
of the ponds, should the standard not be promulgated by March 15, 2004.
- Cargill has agreed to a
future donation of approximately 8,000 acres of salt making rights near
the Newark plant beyond the 16,500 acres.
- The Framework Agreement
provides the guidelines for all parties to negotiate a more detailed
Purchase Agreement and Phase-Out Agreement implementing the Framework
Agreement by September 15, 2002. The purchase is not final until those
two Agreements are completed.