-Editorial
The Calexico City Council approved a resolution authorizing the city manager to execute a land lease agreement with Hensel Phelps, advancing the final phase of the Calexico West Land Port of Entry Expansion and Reconfiguration Project.
The lease grants Hensel Phelps temporary use of two city-owned properties: Border Friendship Park at First Street and Paulin Avenue, and the east parking lot at 352 E. First Street, adjacent to the abandoned Valley Orthopedic Clinic. Both sites will be used to support the construction of a new pedestrian processing facility, which federal officials say will reduce wait times and modernize operations at one of the busiest border crossings in the country.
Under the agreement, the Valley Orthopedic Clinic, which has been vacant since a July 2024 fire rendered the building structurally unsafe and will be demolished. The long-abandoned structure has been described by city leaders as both a safety hazard and a drag on downtown revitalization efforts. By incorporating demolition into the lease, the council addressed a longstanding concern for residents and businesses who have called for its removal.
The lease is structured as a payment-in-kind arrangement. Rather than paying the city monthly rent estimated at $268,440 over the 40-month lease term, Hensel Phelps will complete demolition work valued at $275,000. The agreement also allows for month-to-month extensions should construction extend beyond 2028.
Preparatory work will include clearing both sites for use by the contractor and federal personnel. At the Orthopedic Clinic property, demolition will remove all interior and exterior elements, along with trees and shrubs. At Border Friendship Park, sidewalks, fencing, and landscaping will be removed, and the land will be graded to accommodate construction staging. Once the lease expires, both sites will be returned to the city in “as is” condition following completion of demolition and grading work.
Planning Director Michael Coyne emphasized the lease agreement’s dual benefits: ensuring the timely completion of the federal project and addressing local blight. The pedestrian processing facility is expected to ease congestion, reduce pedestrian wait times, and create a more efficient flow of travelers through Calexico’s downtown port of entry. In addition, the construction workforce and related activity are anticipated to generate business for local shops and restaurants.
The resolution also cites public safety benefits. The Valley Orthopedic Clinic has been fenced off since the fire but has continued to draw trespassers. By including its removal as part of the lease, the city eliminates a liability and prepares the property for future redevelopment.
The lease agreement includes requirements for insurance coverage, compliance with city regulations, and proper management of utilities, repairs, and property use throughout the lease term. Coyne noted that the terms were developed after consultations with real estate professionals and market research to determine fair value for the land.
The project falls under categorical exemptions from the California Environmental Quality Act (CEQA), specifically for existing facilities and minor alterations to land. City staff determined that none of the exceptions under CEQA guidelines applied. A notice of exemption will be filed following execution of the lease agreement.
The approval marks a key milestone in the port expansion project, which has been underway for more than a decade. Managed by the U.S. General Services Administration, the project is intended to modernize the Calexico West Land Port of Entry to handle increasing volumes of cross-border traffic. Earlier phases of the project included the construction of new vehicle inspection lanes and supporting infrastructure.
With the council’s action, the city now joins federal officials in preparing for the final phase of construction, which will culminate in a permanent pedestrian processing facility. Federal officials have said the expansion is critical to regional commerce and security, given Calexico’s role as a gateway between California and Baja California.
