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.