CaliCheese Founder Dies
July 3,3014
Supporters of more economic development in Tulare suffered a set back in recent weeks as the start-up cheese maker,CaliCheese, who expects to hire 200 employees, was hit by a double whammy.
About a month ago the president of the company Jeff Lee became ill with breathing problems while staying in Tulare County, was seen at Kaweah Delta and flown to an LA hospital where he later died. “It was a tragic irony on the eve of seeing his dream come true” says Robert Moultrie, a friend and fellow investor in the project who will now be spearheading it
At the same time CaliCheese faced a June 30 deadline to buy 60 acres owned by the City of Tulare near the wastewater plant but was not ready to complete the purchase quite yet says Moutrie.”We needed a few more months but the city said they could not extend the conditional use permit.”
Apparently that was because upon being pressed by CRLA attorneys representing Matheny Tract – the city came to a new conclusion.
The city recently told Moultrie the cheese project that they had previously deemed to be properly backed by a 2008 EIR that is still in place – would now have to do a new one.
Earlier this year city attorney Martin Koczanowicz defended the original ruling by the then,city planning chief Mark Kielty that the proposed cheese plant could use the EIR approved for a meat plant on the same property. Koczanowicz wrote in February that “the potential impacts are far less than those associated with the meat processing plant.”
The city attorney was responding to a letter from a Matheny Tract,CRLA attorney that suggested the 2008 EIR was “inadequate” because it was approved for a beef plant – a project that after years of litigation was finally settled only to fall flat, the owner claiming that the long delay had killed his financing.
Mr Moultrie who has taken over Lee’s role – says after hearing from the city they have agreed to do a new EIR “even though the traffic issues,water use,sewage,noise and odor impacts are far less.”
Still,“we believe this will only set us back about 5 months” says Moultrie who adds that he has “absolute confidence“ the $350 million CaliCheese proejct will be funded.”We are working with Raymond James and they are very positive.”
He says the new EIR,already being worked on – should be complete by December 4 – allowing the big project to start construction in the first quarter of 2015.
Walk To Work?
But if in the end CRLA sues, the project that could be delayed with unknown consequences.The irony is not lost that a small impoverished community of 220 homes could halt a development project that could provide the jobs that would permanently lift hundreds of local residents out of poverty. From Matheny Tract – about a mile away – they could walk to work. The city has an unemployment rate of 13% and Matheny Tract’s rate is likely much higher.
You may remember that CRLA pushed to halt the annexation of industrial park land (including this land) into the city on the south end of town insisting the city first annex the unincorporated village of Matheny Tract. The annexation could seemingly accomplish all the upgrades in infrastructure that the place lacks.
But to CRLA’s surprise Matheny Tract residents did not want to be annexed preferring to keep their rural rules yet wanting city services. CRLA then dropped objections to the annexation.
Lawsuits Delay Development
Tulare appears to be on radar of private and public interest lawyers who have successfully stopped major development projects in this town in recent years including the Tulare Motorsports project, the years of litigation against the beef plant brought forward by a competitor and now the threat to delay the the CaliCheese plant – unless demands are met.
In their defense CRLA maintains the low income community without good water, sewer or street lights has only moved forward by pressing Tulare city and county for help.
The Colony Energy Case
That is what happened with CRLA, and another job producing project -Colony Energy – who is looking to lease land also near the WWT plant. They want to build an enclosed digester to make biogas from manure and food waste.The bio-methane will be used by the transportation industry, replacing 5,000 gallons per day of diesel fuel and cutting greenhouse gases. Instead of methane from nearby dairy farms going into the already smoggy atmosphere, the emissions will be captured.
CRLA extracted an agreement from Newport-based Colony Energy in 2012 in which the company would pay for street lights for Matheny Tract as well as 10 years of their power bill. The $25 million project is still moving forward in Tulare say sources, but has been delayed.At least CRLA did drop plans to demand an EIR.
But now the city will require CaliCheese to pay for a new EIR, opening the door under CEQA for CRLA to comment and later sue if they want and any other entity like labor advocates who have threatened to sue solar companies across the state using CEQA – unless they agree to hire union labor.
What does Matheny Tract want? Sewer service has been a top priority. The city and county have agreed to cooperate to make this happen but there are no funds to do it.
Maybe the two sides can talk before a new can of worms is opened up?
Such CEQA shenanigans have been the reason why Governor Brown and some in the legislature want to revise CEQA rules in the state to prevent such “Greenmail” lawsuits that keep this state’s economy on a short leash.It’s the reason why guys like Elon Musk look to Texas to build major projects.
Indeed, Tulare can look forward to future objections for every new industrial project it approves in this 400-acre area unless there is some master agreement with these neighbors. Another project using algae ponds to make biofuel is about to move forward.
Whatever the case Mr Moultrie says “in hindsight I wish we would have known we need to do a new EIR a few years ago.” The Tulare City Council is expected to take up the matter later this month.
The silver lining – if you still want to do a beef packing plant in Tulare -there is an EIR in place that will back you.