» News

logo

Media Contact:

Oakland City Attorney's Office
Zoe M. Savitsky
(510) 238-6623
zsavitsky@oaklandcityattorney.org


 

 

 

 

 

 

 

 

 

News from Oakland City Attorney Barbara J. Parker

FOR IMMEDIATE RELEASE
Thursday, July 21, 2022

City of Oakland Remains Committed to Settling the Lawsuits Regarding the 66-Year Ground Lease of the West Gateway of the Former Oakland Army Base for a Bulk Commodity Terminal With Terms That Include an Enforceable Coal Prohibition

July 21, 2022 — In light of recent press inquiries, we issue this statement to provide accurate information regarding the status of confidential negotiations between the City of Oakland (“City”) and Oakland Bulk and Oversized Terminal, LLC, California Capital Investment Group, Insight Terminal Solutions, LLC, and Oakland Global Rail Enterprise, LLC (hereinafter referred to as “OBOT”).

On January 31st, the City and OBOT reached agreement on a framework for settling two pending lawsuits that arose out of disputes regarding the City’s 2016 Army Base Redevelopment Project, and specifically the 66-year Ground Lease of the West Gateway of the former Oakland Army Base for a bulk commodity terminal (the “Ground Lease”).

Having agreed to the key terms of the settlement framework, the parties proceeded to crafting and discussing the terms of a settlement agreement and related documents to: (1) ensure that no coal or coke will be loaded, unloaded, transferred between any mode of transportation, including without limitation between or among a motor vehicle, ship, or train at the West Gateway; (2) resolve the pending lawsuits and allow development of the West Gateway to proceed; and (3) ensure the City receives compensation under the Ground Lease for the use of this valuable public land.

The City has actively and responsively engaged in settlement efforts with OBOT regarding language that will provide an enforceable coal prohibition without loopholes for OBOT or their successors-in-interest over the 66-year term of the Ground Lease. An enforceable and loophole-free coal prohibition is and has always been a cornerstone of the settlement framework and agreement, consistent with City’s commitment and duty to protect Oaklanders’ health and safety.

The City remains committed to securing a comprehensive settlement that is in accord with the settlement framework that the parties agreed to in January—and hopeful that it has negotiating partners in OBOT. The City looks forward to continuing confidential negotiations to reach a successful resolution well before the April 2023 trial date.

For additional background, please see the City’s prior release.

#     #     #