Lease to San Diego Refrigerated Services, Inc. for Refrigerated and Warehouse Services at Tenth Avenue Marine Terminal

Lease to San Diego Refrigerated Services, Inc. for Refrigerated and Warehouse Services at Tenth Avenue Marine Terminal

The proposed project is a new lease with San Diego Refrigerated Services, Inc. (Lessee) for refrigerated and warehouse services at Tenth Avenue Marine Terminal (TAMT). In July 2000, the Board of Port commissioners granted Lessee a lease with the District to operate a cold storage facility at the TAMT. The current lease has been amended four times, as follows: May 2001, May 2002, December 2004, and March 2007. The new lease does not increase the leased premises. Like the current amended leased premises, the new lease will be for approximately 433,965 square feet of land area and the improvements thereon, including 317,802 square feet of refrigerated chill rooms, freezer rooms, and dry storage areas within Warehouse B on the TAMT. Consistent with the terms of the current amended lease and the existing conditions at the project site, the Lessee currently handles both dry and refrigerated cargo, as well as non-perishable cargo and non-strategic military cargo. Historically, a 20 percent fee has been charged for spot cargo. The new lease clarifies the allowable uses on the leased premises so that the use term is consistent with the existing uses occurring on the leased premises. Accordingly, the leased premises proposed for use under this lease, including the refrigerated facility, will be used by Lessee only and exclusively for the provision of dry and refrigerated warehouse services for the handling, shipping ,receiving, delivery, processing, and/or storage of chilled and/or frozen food commodities, perishable, and/or non-perishable general cargo and non-strategic military cargo, with a service provider agreement in place prior to or not subject to the National Shipping Authority Service Priority orders (NSPO) (as defined under the U.S. Department of Transportation, Maritime Administration, National Shipping Authority Port Planning Order No. CASD18) delivered, imported, or exported by waterborne vessel at the District's TAMT. Consistent with the current amended lease and condition at the project site, the new lease provides that the Lessee will, throughout the duration of the lease term and any extension terms, maintain the 80/20 ratio (80/20 ratio means a maritime/domestic tonnage ratio of 80/20 on all imported and exported cargo such that at least 80 percent of such cargo will be imported or exported by waterborne vessel). However, the new lease does update the rental structure of the lease.

San Diego

San Diego