Valero and City Still Negotiating Lease on East Second Street Parcel

The City of Benicia wants to be green and save some money at the same time, but negotiations with Valero over the lease price for a piece of property at the corner of East Second Street and Rose Drive are holding up progress.

According to Community Development Director Charlie Knox, the East Second Street  site will provide a quarter of the power to be generated buy the project and he is unsure what the hold-up is in the negotiations.

According to a story in the Vallejo Times-Herald, the project may not break even if negotiations with Valero aren’t completed soon, but city officials were unwilling to concede that point.

“I’m optimistic we’ll have a deal with Valero,” said Knox.  “When we planned this project our savings projections were very conservative.  I am very hopeful we can beat those projections.”

City Manager Brad Kilger who is leading the negotiations for the city said there is really only one issue when it comes to the negotiations with Valero.  “We are negotiating price and terms,” said Kilger.  “It’s all in how we structure the deal.”

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