TO: LINDA REICH, CITY MANAGER
FROM: SWATI MESHRAM, PHD, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Adoption of Ordinance No. 2026-013.
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RECOMMENDATION
Approve the adoption of Ordinance No. 2026-013 (Second Reading), approving the Development Agreement (DA) between the City of Chino and Dirac BESS LLC for the Dirac Battery Energy Storage System (BESS) Project.
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FISCAL IMPACT
The Project would result in fiscal benefits to the City. Pursuant to the DA, the Applicant would provide two Community Benefit payments totaling $6 million and guarantee that the City receives at least $4 million in combined Project sales and use tax revenue and Development Impact Fees (DIF). In addition, the Applicant would provide $600,000 for fire suppression, emergency management and preparedness related to the Project, and other public services identified by the City. Collectively, the DA would provide a minimum of $10.6 million in community and fiscal benefits to the City.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
• Effective Technology
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BACKGROUND
Ordinance No. 2026-013 was introduced for its first reading at the City Council meeting on September 15, 2026. This Ordinance seeks approval of the Development Agreement between the City of Chino and Dirac BESS LLC for the Dirac Battery Energy Storage System (BESS) Project. If adopted upon second reading, the Ordinance will take effect thirty (30) days after its adoption.
ISSUES/ANALYSIS
ORDINANCE NO. 2026-013
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CHINO AND DIRAC PROJECT LLC, AND MAKING FINDINGS OF GENERAL PLAN CONSISTENCY
Attachment: Ordinance No. 2026-013