LATHROP — Chevron, the fourth largest non-government energy company in the world, plans to build a “secondary” office in Lathrop with construction costs estimated at between $6 million and $8 million.
Headquartered in San Ramon with a reported $220.904 billion revenue in 2007 and approximately 59,000 employees in more than 180 countries, the company that is No. 4 on the Fortune 500 list is expected to have its building permit issued by the city sometime this week.
The Chevron office is one of several new businesses that reportedly will be constructed in the TCN Properties development south of the new Target Marketplace shopping center on River Islands Parkway on the west side of Interstate 5.
No further details are available from City Hall as of press time, which is after business hours. However, the news about Chevron was confirmed by Lathrop Councilman Robert Oliver who had nothing but plaudits for the giant company’s anticipated move to Lathrop.
“Chevron, being a Fortune 500 company, will be a magnet to other businesses,” Oliver said.
And with the $6 million to $8 million anticipated construction cost to build the project, “that will translate to property tax revenue that will benefit the city,” he added.
The anticipated coming of Chevron and “two or more businesses” in the same TCN Properties development location was the main reason Oliver, along with council members Christopher Mateo and Sonny Dhaliwal, voted in favor of the $1.5 million improvements of the portion of Golden Valley Parkway in west Lathrop. The new Chevron plus any other new businesses that will be moving into this southeast area of Mossdale Landing will be directly impacted by these road improvements in this major traffic corridor.
The Golden Valley road improvement project was the only item on the agenda during the Saturday, Dec. 20, City Council special meeting and closed session. Both Mayor Kristy Sayles and Vice Mayor Martha Salcedo voted against the resolution which gave Interim City Manager Cary Keaten the green light to execute the agreement with TCN Properties on the project.
“Since we have a chance to bring two or more businesses in that location, having this infrastructure in place will attract more businesses there,” Dhaliwal said, explaining why he considered his vote in favor of the project was the right thing to do.
“By approving that agreement, it opens the door for more businesses and more revenues for the city. It was the right thing to do. You have to do what’s good for the city. This was a win-win situation,” he said. He declined to disclose the identities of the other businesses but confirmed that they have submitted papers to the city.
Council member Mateo echoed the sentiments of Oliver and Dhaliwal about approving the improvements on Golden Valley Parkway.
“Hopefully, it will attract other businesses to move into town and make Lathrop a better place,” Mateo said.
Phone messages left for Sayles and Salcedo early Monday evening seeking comments as to why they voted against the project were not returned as of press time.
The news about Chevron building what has been described as “secondary” headquarter offices in Lathrop is good news indeed for the city which saw the sudden departure in 2008 of its biggest development project in the Central Lathrop Specific Plan area between the freeway and the San Joaquin River a little farther to the north of River Islands Parkway, which is the old West Louise Avenue. The only building project that has so far been completed in the Richland development is the Lathrop High School which opened to 500 freshman and sophomore students in August. The campus, though, opened without all of its utilities completed such as the Lathrop Road extension west of Manthey Road, and the installation of wastewater service. The school opened with students and faculty entering the campus from Dos Reis Road, a two-lane country road with no curbs and other amenities, located in the back of the school.
With no wastewater treatment plant to service the new school, sewer or wastewater has to be pumped and hauled to the treatment plant in Manteca.
Approval of the agreement to make all necessary improvements to Golden Valley Parkway south of Towne Centre Drive also effectively avoided two potential lawsuits: one from the veterinary clinic which has threatened filing a lawsuit against TCN for not improving Golden Valley which is the main access to the business, and another possible lawsuit from the city against TCN for not meeting its obligation to improve Golden Valley.
Both Oliver and Dhaliwal emphasized that “not a cent” of general fund money from the city coffers is being used for the Golden Valley Parkway improvements. All the money will come from facility fees collected and earmarked for new development improvements such as the Golden Valley road project, Dhaliwal said. Those costs and their sources are also identified in another exhibit attached to the agreement.
“When the road is finished and the signalization of the (Golden Valley Parkway and Towne Centre) intersection is accomplished, a lot of good things are going to happen out of it,” predicted Oliver.
According to the agreement just approved by the council, the city will pay “TCN’s actual cost to construct the Parkway, less the $441,763 in TCN-derived funds” identified in an exhibit attached to the contract. The agreement also states that TCN will be responsible for all plan check and inspection fees.
Phone calls to TCN Properties owners Tom and Cathie Luckey seeking comment were not returned as of press time.