DATE: November 14, 2023
SUBJECT:
Title
ORDINANCE GRANTING AMENDMENT NO. 1 TO LEASE WITH SAN DIEGO REFRIGERATED SERVICES, INC., RESOLVING A LEASE INTERPRETATION DISPUTE BY REMOVING CERTAIN REVENUE SHARING OBLIGATIONS OF THE DISTRICT AND, IN EXCHANGE, EXTENDING THE FINAL OPTION TERM BY THREE YEARS
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EXECUTIVE SUMMARY:
San Diego Refrigerated Services, Inc. (SDRS), leases warehouse space from the District on its Tenth Avenue Marine Terminal pursuant to a Lease which commenced in 2015 and expires in 2036, inclusive of options (Clerk Doc. No. 64269) (Lease). The District and SDRS dispute the interpretation of certain Lease provisions covering District crediting SDRS related to cargo which SDRS handles for another District-tenant, Dole Fresh Fruit Company (Dole Revenue Sharing). To resolve this Lease interpretation dispute, staff recommends the Board approve Amendment No. 1 (Attachment A) to the Lease which removes District's Dole Revenue Sharing obligation and, in exchange, extends the final Lease term option by three years.
RECOMMENDATION:
Recommendation
Adopt an Ordinance granting Amendment No. 1 to Lease with San Diego Refrigerated Services, Inc., resolving a Lease interpretation dispute by removing certain revenue sharing obligations of the District and, in exchange, extending the final option term by three years.
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FISCAL IMPACT:[h1]
This action does not have a fiscal impact.
COMPASS STRATEGIC GOALS:[h2]
This agenda item supports the following Strategic Goal(s).
* A thriving and modern maritime seaport.
* A Port with a comprehensive vision for Port land and water uses integrated to
* A financially sustainable Port that drives job creation and regional economic vitality.
* Not applicable.[h3]
DISCUSSION:
San Diego Refrigerated Services, Inc. (SDRS), leases warehouse space from the District on its Tenth Avenue Marine Terminal pursuant to a Lease which commenced in 2015 and expires in 2036, inclusive of options (Clerk Doc. No. 64269). The...
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