May 16, 2023
Economic Development
Port of Richmond
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nannette Beacham, Director of Economic Development
Lizeht Zepeda, Senior Business Assistance Officer
Lilia Corral, Management Analyst
Subject:
Point San Pablo Harbor Lease Amendment
FINANCIAL IMPACT: This action authorizes the receipt of annual lease revenue for the Port of Richmond, in an amount ranging
from $9,437.40 – $9,613.80 (seven to nine percent CPI
adjustment), for the remainder of Fiscal Year (FY) 2022- 2023 and FY 2023-2024, with subsequent fiscal years to
be determined based on a seven to nine percent annual
CPI increase through FY 2027-2028. (Account String
40162780-362801)
PREVIOUS COUNCIL
ACTION:
06/15/2021
STATEMENT OF THE
ISSUE:
City staff is seeking approval of a lease amendment with Point San Pablo Harbor for a portion of the Terminal 4
property.
RECOMMENDED ACTION APPROVE a Lease Amendment with Point San Pablo Harbor, Inc., a California Corporation, to lease a portion of Terminal 4 through May 31, 2024, with five additional one-year extension options to potentially extend the
lease through May 31, 2029 – Economic Development
Department (Lizeht Zepeda 510-620-6653/ Nannette
Beacham 510-621-1306).
AGENDA
REPORT
May 16, 2023
DISCUSSION:
Point San Pablo Harbor currently leases a small area shown in Exhibit A, located to the West of Stenmark Drive (Attachment 1). The current lease agreement was for a one- year period, with a one-year extension option. The tenant has exercised their only extension option, and the agreement is set to expire on May 31, 2023 (Attachment 2).
Point San Pablo Harbor has expressed their interest in continuing to lease a portion of Terminal 4. The key items for the lease amendment are as follows:
Extend the term for one year (June 1, 2023 - May 31, 2024) Add five (5) additional one-year extension options which would potentially extend the lease for an additional 5 years (June 1, 2024 - May 31, 2029) Annual rent increase by Consumer Price Index (CPI) will be no less than seven percent and no more than nine percent.
The City entered into the original lease (Attachment 2) to assist with the maintenance of the area, as prior to the lease, there was extensive dumping and vandalism at the site.
Under the proposed lease amendment (Attachment 3), Point San Pablo Harbor proposes to continue using the property for the storage of boats, vehicles, and equipment.
DOCUMENTS ATTACHED:
Attachment 1 – Exhibit A – Premises
Attachment 2 – Current Lease Agreement
Attachment 3 – Lease Amendment