Reso. No. _____
RESOLUTION NO. ______
A RESOLUTION OF THE SURPLUS PROPERTY AUTHORITY OF THE CITY OF
RICHMOND AUTHORIZING THE CITY MANAGER AS EXECUTIVE
DIRECTOR OF THE SURPLUS PROPERTY AUTHORITY, OR THEIR
DESIGNEE, TO NEGOTIATE AND EXECUTE A LEASE AGREEMENT WITH STAX ENGINEERING, LLC FOR BASIN 4 AT THE POINT POTRERO MARINE
TERMINAL
WHEREAS, The Surplus Property Authority, through the Port of Richmond, owns and operates the Point Potrero Marine Terminal ("PPMT"); and WHEREAS, the existing tenancy at Basin 4 at PPMT is scheduled to terminate in November 2026, after which the premises will become available for a new maritime use; and WHEREAS, in July 2026, the Port of Richmond issued a competitive Request for Proposals ("RFP") for the lease, development, and operation of Basin 4 for maritime emissions reduction, clean maritime technology, and supporting Port operations; and WHEREAS, the RFP sought a qualified maritime operator capable of leasing, improving, maintaining, and operating Basin 4 in a manner that supports maritime operations, environmental stewardship and emissions reduction, financial sustainability, economic development, and maritime and industrial employment; and
WHEREAS, STAX Engineering, LLC ("STAX") submitted a proposal dated August 5, 2026, to lease, improve, and operate Basin 4 as its Northern California Emissions Control Hub and regional base for the berthing, provisioning, maintenance, and dispatch of emissions capture and control barges serving vessels at the Port of Richmond and elsewhere in the San Francisco Bay Area; and
WHEREAS, STAX operates barge-based maritime emissions capture and control systems designed to capture and treat exhaust from ocean-going vessels while at berth, and California Air Resources Board Executive Orders authorize STAX systems as CARB Approved Emission Control Strategies for regulated vessel categories; and WHEREAS, a five-member City evaluation panel reviewed STAX's proposal pursuant to the criteria established in the RFP, and issued an overall determination of "Meets Requirements," and therefore recommend proceeding with negotiation of a lease agreement with STAX for Basin 4;; and
WHEREAS, STAX proposes an initial five-year lease term, with two additional five-year extension options, for a potential total term of fifteen years, subject to final negotiation and agreement by the parties; and
WHEREAS, STAX has proposed annual base rent of $210,000, payable monthly at $17,500, which would generate revenue for the Port Enterprise Fund; and WHEREAS, STAX proposes to fund approximately $525,000 in improvements to Basin 4 during the first five years of the lease, including berth and waterside improvements, utility and security improvements, operational improvements for crew and office functions, and environmental, safety, and spill-readiness improvements; and WHEREAS, STAX has represented that establishment of its Northern California operations at Basin 4 could support approximately 125 permanent maritime and technical positions and provide opportunities for local workforce development; and WHEREAS, an independent financial review submitted in support of STAX's proposal concluded that STAX maintains positive operating cash flow and adequate working capital and possesses the financial capacity to fulfill the obligations contemplated by the Basin 4 RFP; and Reso. No. _____
WHEREAS, an independent review of comparable lease rates at PPMT recommended a monthly negotiation within the range of $16,000 to $18,000 for Basin 4, with an annual CPI adjustment, and concluded that securing dedicated STAX operations at Richmond provides strategic benefits to the Port beyond base lease revenue; and NOW, THEREFORE, BE IT RESOLVED that the Surplus Property Authority of the City of Richmond hereby authorizes the City Manager as Executive Director, or their designee, on behalf of the Surplus Property Authority, to negotiate and execute a lease agreement with STAX Engineering, LLC for Basin 4 at the Point Potrero Marine Terminal for use as a maritime emissions control operations facility and Northern California operational base, with an anticipated commencement in or after November 2026; and
BE IT FURTHER RESOLVED that the lease negotiations shall be generally consistent with the material business and operational terms described in the City Council staff report and STAX proposal.
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***THE CLERK’S OFFICE WILL COMPLETE THE INFORMATION BELOW**** I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held on Mmmm dd, yyyy, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No. _____, finally passed and adopted by the Surplus Property Authority of the of the City of Richmond at a regular meeting held on Mmmm dd, yyyy.
_______________________________________
Pamela Christian, Clerk of the City of Richmond