The governing board for the Port of Long Beach on Monday approved a short-term lease with California United Terminals that set terms for the terminal operator to vacate its Long Beach Pier D and E terminal by the end of the year.
CUT, a subsidiary of Hyundai Merchant Marine, had been envisioned as the major tenant for a reconfigured Pier D and E being developed by the port, but in July CUT announced it would be leaving Long Beach to take space at the neighboring Port of Los Angeles' APM terminal.
Last year, CUT's lease was shifted to a month-to-month basis when their regular lease expired.
The short-term lease approved on Monday will replace the month-to-month lease and run through December 31, 2010 with a base rent paid to the port of $8.5 million. While CUT will remain responsible under the new terms for the security and maintenance of the entire 154-acre parcel, the short-term lease rent is based on the 120-acre contatiner terminal portion of the property.
The port has the discretion to extend the new lease past the December 31 date on a monthly basis at a minimum rent rate of $2 million per month.
The new lease also set terms for repairs to the terminal that must be performed by CUT no later than Nov. 30, 2010, and specifies the removal of all CUT equipment, including gantry cranes, by the end of the new lease term.
CUT first signed on with the Port of Long Beach in 1979.
Tuesday, September 14, 2010
