The City of Oakland entered into a 66-year ground lease with OBOT for the West Gateway property in February 2016. Under the ground lease, the City retains ownership of the West Gateway property and functions as landlord to OBOT.
Through a long term ground lease with the City of Oakland, OBOT functions as the master tenant of the West Gateway property. As the master tenant, OBOT will sublease the railroad right of way portions of the West Gateway property to Oakland Global Rail Enterprise (OGRE) for the construction of private rail and last-mile switching activities that will serve the bulk terminal operations. The remainder of the West Gateway will be subleased to a bulk terminal operator for construction and operation of a multi-commodity marine bulk terminal.
OBOT is currently in an Exclusive Negotiation and Sublease Option Agreement with Terminal Logistics Solutions (TLS) for the sublease, financing and operation of the bulk terminal at the West Gateway. With respect to the future operations, the terminal operator retains control over selection of commodity types that will flow through OBOT, and in turn, the commodity types inform design, equipment, and throughput volumes at the facility. For more information about TLS’s proposed conceptual design, please visit their website.