The tentative agreement, which the port commission gave initial approval to on Nov. 9, caps nearly 15 years of planning for what the port has called its most-anticipated growth project ever.
The agreement calls for industrial real estate giant CenterPoint Properties to develop a $52 million logistics facility on port property that once served as an Army supply depot.
The project, according to the port, would be the first phase of a planned Seaport Logistics Complex that could eventually encompass nearly 180 acres. The vision for the complex includes modern distribution centers, including a railyard, near marine terminals in the heart of the port.
Work on CenterPoint’s 440,000-square-foot building could begin as early as the first quarter of 2018, according to the port. Officials said the building would be the largest distribution facility at any seaport on the U.S. West Coast.
The Army base was decommissioned in the late 1990s and since then, planners have planned for a logistics campus to enhance Oakland’s role as a global trade gateway. The port received about 187 acres of the property between 2003 and 2007, and the City of Oakland received a similar parcel.
Under terms of the deal, CenterPoint Properties would build and manage the first building at the logistics complex, with likely tenants including companies requiring the transfer of cargo between trucks, trains and vessels for shipment, making Oakland one of the few ports able to perform transloading within its boundaries.
When construction begins, it would culminate 20 months of negotiations between the port, CenterPoint and two coalitions, Revive Oakland and Oakland Works, that represent more than 30 different organizations, including labor, community and faith partners.
Port officials say that the agreement includes “unprecedented commitments” to hire local workers.
“The future is at hand,” Port of Oakland Executive Director Chris Lytle said in a statement. “We’ve got a great development partner, a great plan for the community and a new direction that will set us apart from competitors.”
Central to the deal has been the Revive Oakland and Oakland Work Coalition’s collaboration with CenterPoint and the port to develop a jobs policy that’s envisioned as an economic driver and job generator. The port estimates that the facility could create hundreds of construction and permanent positions in Oakland.
Among the stipulations of the policy are preferences for hiring local residents, particularly those in neighborhoods near the port; special consideration for disadvantaged residents including the chronically unemployed, single parents, formerly incarcerated and military veterans; and funding for a local, community-based workforce development center, to train workforce candidates and provide the opportunity to refer job applicants.
Although the port commission has given its initial approval, a second vote is still required for formal approval. The matter is expected to go up for a second vote Nov. 30, and if approved again, the deal would become official in January.
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