Green Port Policy

8/13/2019 Green Port Policy

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[2} San Diego U nified Port DistrictDocumentNo . 0 ^ X c LF i ,ed__SEEZ2 [ iq8_Office oftineDistrict ClerkBPC Po l i cy No . 736SUBJE CT: GREE N PORT POLICYPURPOSE: To establish a policy for the Integration of overarching environmentalsustainability principles and initiatives to guide business decisions, development andoperations w ithin the S an Diego Unified Port D istrict's (District) jurisdiction.POLICY STATEMENT: The Board of Port Commissioners (Board) is dedicated toprotecting and improving the environmental conditions of San Diego Bay and thetidelands. Additionally, the Board is committed to conducting District operations andmanaging resources in an environmentally sensitive and responsible manner. To thatend, the Board has created this Green Port Policy, which is focused on incorporating abalance of environmental, social and economic concerns into operations on San DiegoBay and the tidelands.For the purposes of this Policy, environmental sustainability is defined as the ability tomeet the needs of the present without compromising the ability of future generations tomeet their own needs. It is commonly measured in terms of environmental stewardship,social responsibility and econom ic prosperity.The following mission and objectives have been developed to guide business decisionsin adherence to the Green Port Policy.MISSION: Provide leadership by minimizing environmental impacts from operations ontidelands and ensure a thriving comm unity where people and the environment prosper.OBJECTIVES: To effectively administer the Green Port Policy, the District will strive to:

Minimize, to the extent practicable, environmental impacts directly attributable tooperations on San Diego Bay and the tidelands. Strengthen the District's financial position by maximizing the long-term benefitsof energy and resource conservation. Prevent pollution and improve persona l, comm unity, and environmen tal health. W hen poss ible, exceed applicable environmental laws, regulations and otherindustry standards. E nsure a balance of environm ental, social and economic concerns areconsidered during planning, development and operational decisions. Define and establish performance-driven environmental sustainability objectives,targets and programs. Monitor key environm ental indicators and consistently improve performanc e.

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F oster socially and environme ntally responsible behav ior throughcommunications with employees, tenants, stakeholders and the community. Collaborate with tenants to develop an integrated, measu rable. Bay-wideenvironme ntal sustainability effort.

RE SOLUTION NUMBE R AND DATE : 2 008-18 3, dated September 2, 2008 (SupersedesBPC Policy 736, Resolution 2007-2 13, dated December 11 ,2007)BPC Policy No. 736 Page 2 of 2

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AGEND A ITEM 24SA N DIEGO UNIFIED PORT DISTRICTDATE: September 2, 2008SUB JECT: RESOLUTIONS ADOPTING REVISIONS TO THE FOLLO WING :

A) BOA RD OF PORT COM MISSIONERS (BPC) POLICY NO . 112 -SALE OR EXCHANGE OF R EAL ESTATE PRO PERTY;B) BPC POLICY NO . 353 - DISPLAY OF WA RES OR MERCHANDISE;C) BPC POLICY NO . 355 - REA L ESTATE LEASING POLICY;D) BPC POLICY NO. 356 - LESS EES ' WAG E RATES;E) BPC POLICY NO. 357 - APPRO VAL OF TENANT PROJECTPLANS;F) BPC POLICY NO. 360 - REQU EST FOR PRO POS ALS;G) BPC POLICY NO. 366 - EMPLOYER-EMPLOYEE RELATIONSRESOLUTION;H) BPC POLICY NO. 610 - MONUMENTS, MEMORIALS, ANDPLAQUES;I) BPC POLICY NO. 611 - DON ATED/LOAN ED ITEMS POLICY ; ANDJ) BPC POLICY NO . 736 - GRE EN PORT POLICY

EXECUTIVE SUMM ARY:Staff is reviewing all existing BPC Policies to ensure that they are current and in asimilar format, and wil l bring back recommended updates to other Policies at futureBoard M eetings. The updates to the po licies noted above involve only reformatting andminor changes with two exceptions. In BPC Policy No. 610 - Monuments, Memorials,and Plaques, the se ction pertaining to retention and dea ccessioning was ad ded to be inline with the other updated Board policies related to Public Art. For BPC Policy No. 736-Green Port Policy, the Environmental department is proposing changing the name fromEnvironmental S ustainability Policy to be consistent w ith the Green Port Program.RECOMMENDATION:Ado pt Resolutions adop ting revisions to the follow ing:A) Board of Port Com missioners (BPC) P olicy No . 112 - Sale or Exchange of RealEstate Property;B) BPC Policy No. 353 - Display of W ares or M erchandise;C) BPC Policy No. 355 - Real Estate Leasing P olicy;D) BPC Policy No. 356 - Lessees' Wage Rates;E) BPC Policy No . 357 - Approval of Tenan t Project Plans;F) BPC P olicy No. 360 - Request for Proposa ls;G) BPC Policy No. 366 - Employer-Employee Relations R esolution;H) BPC P olicy No. 610 - Monum ents, Mem orials, and Plaques1) BPC Policy No. 611 - Don ated/Loan ed Items Policy; andJ) BPC P olicy No. 736 - Gree n Port Policy

San Diego Unified Port District Board Meeting - September 2, 2008ACTION TAKEN: 09-02-08 - Resolutions 2008-174 through and including 2008-183

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AGENDA ITEM 24Page 2 o f 3

FISCAL IMPACT:This Board action has no fiscal impact.DISCUSSION:The recommended revisions are summarized below:

BPC Pol icyNo.112353355356357360366610

611736

Depar tmentNo.154154154154154154128161

161143

TITLESale of Exchange ofReal PropertyDisplay of Wares or

MerchandiseReal Estate LeasingPolicyLessees' Wage RatesApproval of TenantProject PlansRequest for ProposalsEmployer-EmployeeRelations ResolutionsMonuments,

Mem orials, andPlaques

Donated/LoanedItems PolicyGreen Port Policy

REVISIONSRe-formatting and minoredits.Re-formatting and minor

edits.Re-formatting and minoredits.Re-formatting.Re-formatting and minoredits.Re-formatting and minoredits.Re-formatting and minoredits.Re-formatting, minor edits,and the section pertaining toretention anddeaccessioning was addedto be in line with the otherupdated Board policiesrelated to Pu blic A rt.Re-formatting and minoredits.Changing the name fromEnvironmental SustainabilityPolicy to Green Port policy,

re-formatting, and minoredits.

Por t A t torney 's Comments :Not Applicable

San Diego Unified Port District Board Meefing - September 2, 2008


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AGEND A ITEM 24Pa ge 3 of 3

Env i ronmenta l Rev iew:This proposed Board action is not subject to CEQ A, as am end ed.Equal Oppor tun i ty Program:Not applicablePREP ARED BY: Mary Ann Liner, District Clerk

Laura Nicholson, Deputy District ClerkDonna Royston, Manager, Commissioner Services

San Diego Unified Port District Board Meeting - September 2, 2008


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^ < ^ ^ ^ ; v ^ ^AttachmenttoAgenda Sheet No. ^

BPC Pol icy No. 112

SUBJECT SALE OR EXCHANGE OF REAL PROPERTY

PUR PO SE: To Establ ish Policy for the Sale or Exchange of District-Owned Rea l PropertyPOLICY STATEMENT:

1. Sales or exch ang es of real property b elonging to the San Dieao Un ified Port District(District) and the terms of such sale or exchange must be approved by the Board ofPort Commissioners (Board).2 Wh eneve r i t is deten nined by the Board,_or recorrimended by th e ^ x e ^that District-owned real property sh ould be sold or exchange d, the Exe cutive Directorshall submit a report to include the following:

a. Description.

b. Value and how the value was determine d.c. The recommen ded minimum amount that should be considered.d. Whe ther or not there should be real estate broker's part icipation.e. Recomm ended broker 's fee.f. Recom men dation as to meth od of sale:

1) Neg otiation (give reaso ns).Public auction {recommended increments of bids)Sealed bids.Combination of publ ic auction and sealed bids.

2)3)4)5) Request for Proposals (RFP) if the consideration for the sale orexchange includes something other than land or cash.

De let ed : ot Por t CommissionersDel e ted : Por tDe l e ted : Por t

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3. If the sale or exc han ge is app rov ed , the Board^will dec ide: .,---( Deleted:of Poncommissionea. Wh ethe r the District will pay the usual buye rs' and sellers' escro w and titlecharges.b. Broker participation and broke r's fee.c. Metho d of sale.d. Increm ents of bids if sale Is to be by public auc tion.e. Minimum amo unt to be considere d.

4. If the B oard , ap pro ve s t he sale or exc han ge, the Exe cu tive Dire ctor w ill sell or , -{Deleted: otPoncommissionersexchange the property, comp lying with the Board's condit ions. '" j Deleted:port5. The x ec u t i ve pi recto r sh a11 s u b m it offers of th e sale or exch a n ge to the Boa rc^ f9 r, - {P^'eted: port

f i n a l ap p r ov a l o r r e j e c t i o n . " " (De le ted ; of Ron Commiss iQ ner

RESOLUTION NU MBER AND D ATE: 2008-XXX, dated September 2, 2008 {SupersedesBPC Policy 112, Resolution 68-298, dated Decembers, 1968)BPC Policy No 112 Page 2 of 2


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' " ^ - ' o ^ ^V ^ 'BPC P olicy No. 353

SUBJECT : D ISPLAY OF WAR ES OR MERCHANDISEPUR POS E: To regulate the outdoor exhibit ion, show or display of ware s or merchan diseby lessees.POLICY STATEMENT:

1. The sett ing out for exhibit ion, show or display of any wares or merchandise upon anyarea betvyeen the outer edge of the sidewalk or curb and the property line of leasedpremises shall be prohibited on the t idelands.2. Exhibition, show or display of any wares or merchandise betwee n existing bui ldingsand fences and the property l ine of leased premises must be compatible with thebusiness of the leased pre mises and the ternis of the lease.3. Outside exhibition, show or display of any wares or merchandise sha l l be p ennitted

only on the express written app roval of the Executive D irector for a specif ic perio d oftime. Delete d: Port

RESOLU TION NUMBER AND DA TE: 2008-XXX, dated September 2, 2008 (Supersede sBPC Policy 353, Resolution 68-298, dated December 3, 1968)Page1 of 1


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BPC P olicy No. 355

SUBJE CT: REAL ESTATE LEASING POLICY

PU RPO SE: To Establ ish General Pol icies for Leasing the San Dieao Unif ied Port District(District) Real Estate AssetsINT RO DU CT ION : The Real Estate Leasing Policy establ ishes general real estate leasingpolicies that have been adopted by resolution of the Board ofPort Com missioners (Board). A separate docum ent, AdministrativePractices - Re al Estate Leasing, descnbe, the practices andprocedures to be used in establ ishing rent, conducting rent reviews andexten ding ex isting leases ; and states the con dition s for the ^District'sapproval of subleases, leasehold f inancing, lease assignment andlease am endm ent. The Practices also state the distr ict 's com mitme ntto meet and confer in good faith with the San Diego Port tenantsAssociation {SDPTA) regarding changes to the Practices and toconduct a public workshop on the changes when requested by the

SDPTA.

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POLICY STATEMENT:1. Leasing Authority

a. Sho rt-Tenn Lea ses (Five Years or Less) - The Exe cutiv e Director may,without prior Board approval, enter into leases and use permits {includingTideland Use and Occupancy Permi ts , rental agreements, easements,l icenses and other similar types of real estate agreements) for terms notexceed ing f ive {5) years in duration. The .Executive Director shal l provide theBoard with a report each month that Identi f ies each such tenant, location, use,area , rent and term.b. Lon g-Te rm Leas es (More than Five Years) - Al l leases for terms excee dingfive (5) years in duration shal l be presented to the Board for approval at apublic meeting.

2. Ten ant Quali f ications

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To b ecom e a .Q^trict tenant or subtenant, tt ie prospective tenant or subtenant an d i tsprincipals shal l ; , { i ) be reputable (the absence of a reputation for dishonesty, criminalconduct, or association with criminal elements); ( i i ) possess suff icient experience toconduct the proposed business; and {i i i ) possess the f inancial means to perfonn thePage 1 of

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tenant's obl igations under the lease.3. Rents

The District shal l seek market rent when leasing i ts real estate assets and theDistrict 's lease ssh all reflect rnarket tenris and condit ions, t h e Board retains the rightto grant rent discounts, waivers or other concessions, but only after the Board hasbeen advised of the value of the discount, waiver or concession and the reasonssupporting i tIn considering whe ther to grant a rent discount, waiver or other concession , the Boardshould consider i ts duty to balance the promotion of f ishing, navigation, commerceand public access with the obligation to the citizens of California to be fiscally self-supporting, to optimize revenues"^'and to reinvest proceeds in the t idelands.

4. Leasehold ImprovementsDistrict leases shall provide for tenants to ma intain all jmp roy em ent s o n theirleaseho lds, except for mult i-tenant bu i ldings wh ere the District 's rent includes specif icmaintenance responsibi l i t ies.District leases shall provide that whe n a lease term inates, the District shal l have theoption toi_ (i) require the tenant to remove the tenant-owned improvements at thetenant's ex pens e; or (ii ) take t i t le to the improve men ts.

5. SubleasesShort-Te rm Sublease s (Five Years or Less) - The Exec utive D irector may, withoutprior Board approval, consent to subleases for tenns not exceeding f ive (5) years induration. The xe cut ive Director shal l provide the Board with a report each m onththat identi f ies each such subtenant, location, use and tenn.Long-Term Subleases (More than Five Years) - Al l subleases for terms exceedingfive (5) years in duration shal l be presented to the Board for consent.Sublease s shall contain, as a minimum^ provisions that;, ( i) meet currentD istnct leaserequirements; ( i i ) provide that the subtenant shal l be obl igated to pay any masterlease rent increases that are applicable to the subleased premises; and (i i i ) providethat in the event of a confl ict between the master lease and the sublease, the master

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"" "Optimizing revenues" refers to the pistr ict's c onside raton of maintaining the highest revenue streampossibly while balancing the strategic goals and otjjectives of the Boa rdin managing thepistrict's operations.Certain goals and objectives m ay not maximize revenues compa red to other land use options; however, theymay be given a higher priority due to thepis trict's desire to maintain "balanced" operations.BPC Policy No. 355 Page 2 of 22

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lease shall prevai l .6. Lea se Ame ndm ents

Short-Te rm S ubleases (Five Years or Less) - Th e _Executiye Director may, withoutprior Board approval, consent to amendments to leases with terms not exceedingfive (5) years in duration. The Exe cutive Director shal l provide the Board with a reporteach month that identi f ies each such tenant, location, use, area, rent and term.Long-Term Subleases (More than Five Years) - Al l proposed amendments to leaseswith terms exceeding f ive (5) years in duration shal l be presented to the Board forconsent.

7. Transaction Processing FeesWith exceptions noted below, the District shal l charge a transaction processing fee ofnot less than f ive hundred dol lars ($500.00). Exceptions includ e;, ( i j rent reviews,{ii)_transactions that be nefit the Distric t (e.g. , a new or renewal lease that vyill result inadd itional rent to the Port), or (iii) trans action s that bene fit the Distric t's p rope rties(e.g. ,an ease me nt for util it ies that wi ll serve District tenan ts).

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RESO LUTION N UMBER AND DATE: 2008-XXX, dated September 2, 2008 (SupersedesBPC Policy 355, Resolution 2004-43, dated March 30, 2004; Resolution 2002-311 datedNovember 5, 2002; Resolution 98-28, dated January 27, 1998; BPC Policy 350, Resolution95-244, dated July 25, 1995; BPC Policy 35 1, Resolution 9 5-268, dated August 22 , 1995;BPC Policy No. 352, Resolution 92-47, dated February 18, 1992; and BPC Policy No. 354,Resolut ion 81-328, dated October 6,19 81)

BPC Policy No. 355 Page 3 of 22


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SAN DIEGO UNIF IED PORT DISTRICTS U B JE C T : A D MI N I S T R A T I V E P R A C T I C E S - R E A L E S T A T E L E A S I N GP U R P OS E : T o E s t a b l i sh F a i r a n d C o n s i s t e n t Gu i d e l i n e s f o r L e a s i n g t h e P o r t ' s R e a lE s t a t e A sse t s

I n t r o d u c t i o nThe Admin ist ra t ive Pract ices are pract ica l gu ide l ines that implement BPC Pol icy No. 355,Distr ict Real Estate Leasing Pol icy. The Pol icy consists of general statements that arein tended to encourage pr ivate investment ; to promote h igh standards of development ,operat ion and maintenance; and to assure that publ ic t rust assets are managedresponsibly. The Practices are intended to provide clear guidel ines and procedures forimplementat ion of the Pol icy.In the event the Port proposes to make changes to the Practices, the Port shal l not i fy theSan Diego Port Tenants Associa t ion (SDPTA) in advance and wi l l meet and confer ingood fa i th wi th the SDPTA to d iscuss the proposed changes. The SDPTA may request apubl ic workshop on the changes. However, in individual lease negotiat ions, the foregoingdoes not in any way preclude the Port f rom negot ia t ing terms that vary in some respectsfrom the Practices as long as the Port and the tenant are in agreement.The Practices are diyided into eight categories as outl ined below:

A. Estab l ish ing Rent and Conduct ing Rent ReviewsB. Lease ExtensionsC. Leasehold F inancingD. Assignment o f Leasehold In terestE. SubleasingF. Lease Am endm entsG. Trust Obl igat ionsH- Transact ion Processing Fees and Secur i ty Deposi ts

The Practices fol low;

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A. ESTABLISHING RENT AND CONDUCTING RENT REVIEWSThe Port should receive market rent for the leasing of i ts property, and rent should beadjusted lo market periodical ly during the term of the lease. Market rent should be basedon a current appraisal that cori ipl ies with the Uniform Standards of Professional AppraisalPractice, publ ished by the Appraisal Foundation. Port staff may consider other relevantinformation in arriving at the appropriate rent for a property. Other exceptions to theappraisal requi rement are noted below.Most Port leases are either percentage leases or f lat rent leases. In a percentage lease,the Port receives the greater of a minimum rent or percentages of gross income generatedby the economic gctlvi t ies that are conducted on the premises. In a f lat rent lease, the rentis a f ixed amount. Specif ic practices for percentage rent leases and f lat rent leases fol low.Perc enta ge R ent Lea ses - Market perc entag e rates tend to be relatively constant overt ime, and market val idation of percentage rates for al l of the Port 's revenue categories byappraisal is a major undertak ing. Therefore, for determining percentage rates for newlease s and rent reviews for existing leases , the Port shou ld establ ish benc hma rkappraisals by general geographic locat ion and property type. The benchmark appraisalsshould be conducted on an ongoing basis, and should be uti l ized in detemnining rent at therent review date stipulated in the lease.Minimum rents in new percentage leases and in rent reviews should be set at no less than75 percent of market rent as determined by appraisal or other re levant informat ion. Forsubstant ia l redevelopment and new construct ion, the Port may abate a port ion of theminim um rent dur ing construct ion when i t is deem ed appropr iate.Percentage rent leases should provide for market rent reviews every ten (10) years withmid-term adjustme nts to the minimu m rent for changes in the consu me r pr ice index.Appraisals of properties that normally rent for percentages of gross revenues (e.g. , hotels,restaurants, marinas and retai l stores) should consider rents and percentage rates paid oncomp arable propert ies, in addi tion to econom ic analys is and other appraisal tech niques.Flat Rent Leases - For deter mining m arket rent for new flat rent leases and for rentreviews in existing leases, individual appraisals that comply with the Uniform Standards ofProfessional Appraisal Pract ice should be conducted. Port s taf f may consider otherrelevant information in arriving at the appropriate rent for a property.

Flat rent leases should provide for market rent reviews every ten (10) years with mid-termadjustmen ts for changes in the consu mer pr ice index.



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Ap pra isal Excep tion - If the cost of an appraisal is not justi f ied by the anticipate d ren ts,other less expensive analysis methods may be employed to establ ish rent, as long asadequate market information is avai lable to support a reasonable and fair conclusion.Timely Completion of Rent Review Appraisals - The Port should be prepared to submit i tsrent proposal to the tenant no less than sixty (60) calendar days in advance of thecommencement date of the rental per iod under rev iew.Re nt Arbitration - Port leases shall provide for binding "baseba ll arbitration" wh en the Portand the tenant cannot agree on the new rent for a rental period under review. In baseballarbitrat ion, a panel of three arbitrators must select by majonty vote either the Port 's rentproposal or the tenant's rent proposal, whichever is judged to be the closest to marketrent, as the rent for the next rental period of the lease. The Port and tenant each shallselect one arbitrator and the two arbitrators wil l mutual ly select the third arbitrator. Al larbitrators must be quali f ied real estate appraisers and l icensed to practice in the state ofCali fornia.Appraisal Assumpt ions Regardino Status of Prooertv -The appraisal should ref lect thevalue of the land as-i f vacant and avai lable for new development. The appraisal shouldassume that al l regulatory approvals that al low the existing use have been obtained, andthere should be no discount for costs and t ime delays associated with obtaining theregulatory approvals.The appraisal should be consistent with the highest and best use of the property, as i fvacant, on the date of value. Market condit ions may support a highest and best use thatdiffers from the existing use.Notwithstanding the above, the appraisal must be consistent with the use restrict ions andother contractual burdens placed on the land by the terms of the ground lease.App raisal of Mari t ime Propert ies - Propert ies that are managed by the Mari t ime Div is ion,that are used for mari t ime purposes, should be appraised by comparison wi th otherseaport and/or marit ime industrial properties, and should consider total potential revenuesinc luding but not l imi ted to wharfage an d do ckage.



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B. LEASE EXTENSIONSThe Port should uti l ize the lease extension process to (a) promote capital investment, {b)encourage redevelopment, and (c) update out-of-date leases. This sect ion provides anarrative explanation of the process the Port should fol low in determining whether aproposed development qual i f ies for an extended lease term, the length of the extendedt e rm, and whether there should be compensation to the Port for extending the term. Adecision tree f lowchart outl ining the general process to be fol lowed when a tenantrequests a lease extension is presented in this section.Lease Ex tens ion Prac t i ce and Dec is ion Cr i te r iaTenant Requests a Lease Extension - The submission package should inc lude thefol lowing informa t ion; Desc nption of the deve lopme nt conc ept and the propo sed project fol lowing theguidel ines stated in UPD Form 736, Guidel ine for Tenant Project Plan Submittal.Request for approval in concept as described in UPD 736 is the minimumrequirement. A statem ent that the property wil l be in com pliance with the Port Master Plan . Evide nce that the tenan t quali f ies as a "tenan t in goo d stand ing" (defined below ). Any proposed changes to owne rship. Description of the deve lopm ent team and i ts quali f ications. Prop osed lease extension terms (including i f appl icab le minim um rent, perce ntagerent by use, and compensation to the Port for deferral of i ts reversionaryimprovement value as provided in this section), and justi f ication for such terms. Finan cial feasibi l i ty of the extens ion including pro form a cash f lows (i f appl ica ble). Ant ic ipated developmen t cost wi th repai r and maintena nce, and furni ture, f ix tureand equipmen t i tems c leariy del ineated. Justi f ication that the existing ope rator is capa ble of optimizing the use and return tothe Port, thereby negating the need for a Request for Proposal process. Justi f ication that the tenant has the expe rtise and f inancial capa bil i ty to deve lop andoperate the property , when the proposed development is d i f ferent f rom the exis t inguse.Pro po sal Cons istent with Master Plan - Init ial ly, the Port should determin e If the pr opo salis consistent with the Port Master Plan. Inherent in this decision is the assumption that theplanning process uti l ized in developing the Master Plan evaluated the potential for thehighest and best use for the property, the goals of the Port and the input of the localcommunity. If the proposal is not consistent with the Master Plan, the Port should notnegotiate a lease extension.BPC Policy No. 355 Page 7 of 22


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Pro pos al Cons istent with the Port 's Vision for Future U se of the Property - I f the prop osalis consistent with the Master Plan but is not consistent with the Port 's vision for the futureuse of the property, the Port should not negotiate a lease extension.Qua l i f icat ion as a "tenant in goo d stan ding " - To qual i fy for a lease exte nsion , the tenan tshould be considered a "tenant in good standing." The cri teria should include a review ofthe tenant 's history with respect to the fol lowing:

Maintena nce of the leasehold in good condi t ion, f ree of deferred m aintenancePrompt payment h istoryCompliance with the provisions of the current lease, including use provisions,insurance requi rements and regula tory permi t t ing processesMaxim izat ion o f the gross revenue of the tenant 's businessMaintenance of accurate f inancial records that are accessible to the PortCompl iance wi th Por t po l ic ies on publ ic accommodat ion and non-d iscr iminatoryemployment and contract ing

If the exist ing tenant does not meet the requirements for a "tenant in good standing," thenno lease extension s hould be negot ia ted.Benef i t f rom Renovat ion or Redevelopment - Renovat ion or redevelopment contemplatesmaking capi ta l improvements to the proper ty that would a l low for business expansion,modern izat ion o f faci l i t ies, aesthet ic enhancement ; or that mainta in or increase theexist ing revenue st ream to the Port by expansion of the exist ing improvements orreposit ioning the property to a higher standard of qual i ty.Acce ptab le De velopm ent Plan Presen ted by the Tenant - If the property would ben ef i tf rom renovat ion or redevelopment , the Port must decide i f the exist ing tenant haspresented an acceptab le redevelopment p lan. The Port and the tenant would then enterinto negotiat ions that would result ei ther in a plan acceptable to the Port, or a decision thatthe existing tenant is not capable o f implem ent ing an acceptab le redevelopm ent plan.Proces s for Exten ding Leases - If a proposed pro ject is consistent wi th both the PortMaster Plan and the Port 's vision for the future use of the property, and the proposalmeets the other cr i ter ia descr ibed above, the Port should negot ia te a new lease based onthe fo l lowing f low char t and requi rements:



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LEASE EXTENSION PROCESS

Tenant submiis for a lease extension.

Is use consisient with Master Plan?Y e s

Is lenani in good standin ?

Y e sWill properly benefit fromrenovaiion/redevelciDment?

Y e s

Docs tenant have an acceptableredevelopment plan?

Y e s

Negotiate lease extension.

No.

A

Green Port Policy

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