May 5, 2026
Introduction of Ordinance Authorizing the
Interim City Manager to Execute a Third
Amendment to the Lease with Bayview
Landing LP for Approximately 6.4 Acres of
City-Owned Public Trust Tidelands Located at
1527 Buena Vista (Encinal Terminals)
1 Encinal Terminals: Proposed Temporary
Use
Pennzoil Site
Encinal Terminals Tidelands Lease
Seaplane Lagoon
Waterfront Park
3 • Term: 25-year term (started in 1979), with
25-year extension exercised 2004;expires
April 2029
• Leased Area: Approx. 6.4 acres within the
larger 23-acre Encinal Terminals site
• Rent: $1,012/yr (adjusted every 5 yrs based
on property tax reassessment)
• Allowable Uses: Must be consistent with
Tidelands Grant Statutes
Background: Encinal Terminals
Development Context
• 2022: City Council adopted the amended Encinal Terminals Tidelands Exchange Master Plan, Development Agreement (DA), Disposition and Development Agreement (DDA) and Tidelands Exchange to facilitate redevelopment of the property.
• Included certain milestones within the overall 15-year term of the DA/DDA to ensure completion of intermediate steps.
• 2025: City Council approved modification of interim milestones in DA and Master Plan, giving Developer more time for market to recover, find a buyer/develop the site.
Planning Board Approves Use Permit
March 23, 2026, the Planning Board approved use permit:
• Allows interim use for the non-retail, commercial storage of new electric vehicles (EVs) (amendment brings allowable uses into alignment with use permit) • Access improvements from Clement to allow loading and unloading operations would occur entirely within site; no stopping or parking on public streets • Related improvements modify entrance to Fortman Marina, improving intersection safety
• Hours of operation would be limited to between 8:00 AM and 4:00 PM, unless authorized by Planning Director
Why is Lease Amendment Required?
A Lease requires approval by the City (as Lessor) for any use that is:
• Substantially different than those permitted under the existing Lease; or
• Inconsistent with the provisions of the Public Trust Doctrine.
Proposed Lease Amendment
The proposed amendment would establish the following:
• Allowable Uses. Authorize temporary outdoor new electric vehicle storage during the two-year interim period prior to implementation of the Master Plan.
• Additional Rent. Additional compensation of $4,500 per month (base rent currently is approximately $1,000 per year).
• Sublease. Authorize sublease agreements with RAR Capital, the third-party entity proposing to operate the site (future change in sublease entity subject to approval by the City Manager)
Temporary Use Benefits and Impacts
Seaplane Lagoon
Waterfront Park
8 Benefits Impacts
• Blighted site subject to trespassing and
truancy is secured and activated
• Increased truck traffic; impacts could be
exacerbated during Oakland Alameda
Access Project tube closures.
• Additional revenue to City to support
other Tidelands properties
• Noise from truck traffic, entering exiting
site, etc.
• Financial support for Lessee until market
conditions allow for sale and/or
development of site
Staff Recommendation
Hold a public hearing to consider introduction of an ordinance authorizing the City Manager to execute a third amendment to the lease with Bayview Landing, L.P. for approximately 6.4 acres of City- owned public trust tidelands located at 1527 Buena Vista (Encinal Terminals).
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