N.Y.-N.J. port extends juice company terminal lease
The Port Authority of New York and New Jersey last week approved extending a 25-year lease with Citrus Products Inc. at Port Newark for the continued operation of a bulk orange juice storage facility.
In April 1984, the Board authorized a 25-year lease with Citrus, previously known as Interamerican Juice Co. Inc., for space in the port and use of Berth 24 at Port Newark TO establish THE bulk storage facility for the receipt, storage, blending, processing, packaging and distribution of orange juice concentrates and other fruit juices. The existing lease was due to expire in May 2010.
Under the authorization, Citrus will enter into a new lease that will extend its occupation of its current premises through October 2033.
The total aggregate rental under the proposed new lease would be between $22.5 million and $26.7 million over the term of the agreement. Citrus would be required to provide a minimum of 100,000 metric tons of wharfage activity across Berth 24 during each lease year, and would be required to provide a minimum dockage activity during each lease year.
In addition, Citrus would be required to invest an additional $15 million by October 2020 for the further development of its orange juice tank farm and operations, adding additional throughput capacity to the current operation. If Citrus did not make the required $15 million investment by October 2020, the port authority would have the right to terminate the agreement.