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ATTACHMENT PROJECT DESCRIPTION INTRODUCTION By this submitted Use Permit application,the Union Pacific Railroad Company proposes to expand its existing Intermodal Facility located within the unincorporated San Joaquin County. The current development covers approximately 130 acres in unincorporated San Joaquin County and is bordered on the east and south by agricultural land,on the west by the Sharpe Army Depot and on the north by Roth road. UP controls approximately 202.4 acres of real property at the expansion site, approximately 81.3 acres of which is leased. Of that acreage,approximately 134.5 acres is currently developed. UP intends to purchase approximately 75 acres of additional property for the expansion, and the total developed area when the expansion is complete will be approximately 277 acres. The existing facility footprint and property proposed for expansion is zoned AG-40.All land directly adjacent to the current project is also zoned AG-40, with the exception of Sharpe Army Depot. The existing site and proposed expansion area lies within the City of Lathrop Planning Area under its 2010 Community Plan(although outside the city limits)and within the Manteca Sphere of Influence) The cities of Lathrop and Manteca lie a short distance west and southeast, respectively,from the intermodal facility.The facility is approximately 6 miles south of Stockton. San Joaquin County maintains land use authority for the current facility operation and the proposed expansion. The current facility was built in 1993 to replace the Stockton Intermodal Facility,which was operating at peak capacity at the time,and to move the operation from an urbanized area to a more suitable location. The facility is a transportation hub and railroad-to-truck,or"intermodal",transfer point for agricultural and other domestic freight: essentially, intermodal cargo units are transferred from rail car to truck for local distribution or from truck to rail car for long-haul shipment by rail.The facility therefore provides a critical rail freight connection between California's Central Valley and the rest of the United States and reduces the overall number of trucks that would otherwise be needed to transport these goods to and from the region. Union Pacific has long considered Northern California a strategic location for intermodal operations because it provides the chance to capture inbound consumer goods bound for various large markets in the San Joaquin and Sacramento regions and beyond, including Southern California and the Bay Area. Additionally, a variety of products produced in the area, such as canned goods and wine,add to the quantity of outbound loads available to be shipped on the railroad. As discussed more fully below, an expanded facility will create temporary and permanent jobs at the site, allow Union Pacific to better serve local shippers and distribution centers,and in 5 to 10 years convert up to 130,000 long-haul shipments of freight by truck per year to lower-cost, lower-emission transport by rail,with corresponding benefits in reductions in regional truck traffic and emissions and highway maintenance. An expanded facility will also create synergistic benefits with a 4.4 million square foot integrated logistics center being proposed by CenterPoint Properties immediately to the east of the site2. EXISTING FACILITY OPERATIONS The existing facility consists primarily of railroad tracks,trailer/container parking areas, an access gate complex to process inbound and outbound trucks and support buildings for administration and maintenance. The proposed expanded facility will have all of the same functions, but with increased capacity so that more freight can be transported via rail to accommodate the needs of the region. 1 A portion of the footprint of the proposed expansion currently lies within an area proposed for annexation within the City of Manteca. See Attachment 6(Ownership Profile).This land was proposed for annexation before Union Pacific decided to acquire it as part of its project expansion. Now that this land is to be included as part of the Intermodal Facility expansion, Union Pacific will have it removed from the land to be annexed into the City of Manteca. 2 The CenterPoint project lies within land proposed for annexation to the City of Manteca,and so CenterPoint is processing land use entitlements with that City in parallel to Union Pacific's expansion project. 1