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Port lease with crushing operation moves forward after years of litigation over stockpile
Summary
The committee recommended approval of a 5‑year lease with Sustainable Crushing Ventures for the Port's Seawall Lot 352 and a related services contract to remove a legacy stockpile; port staff emphasized environmental controls, modest base rent and a participation rent tied to gross receipts.
The Budget & Finance Committee recommended that the Board approve a lease and related services agreement with Sustainable Crushing Ventures LLC for the Port’s Seawall Lot 352 in the Southern Waterfront.
Brad Benson, special projects manager for the Port, said the proposal resolves a long‑standing problem: a stockpile of roughly 120,000 tons of abandoned asphalt and concrete left by a previous tenant and the litigation that followed. The negotiated package includes a services contract to crush and remove the existing stockpile (not‑to‑exceed ~$1 million, with a $605,000 cash payment up front), a 5‑year lease with a 5‑year option on a 6.75‑acre site and an optional construction contract to use recycled fill on adjacent backlands.
Key commercial terms: base rent of $0.15 per square foot per month (below the port’s typical $0.20 parameter), a participation rent that begins if gross receipts exceed $2.2 million, and requirements that the tenant make annual stormwater/landscaping improvements (~$90,000/year) and provide financial guarantees (a $750,000 corporate guarantee, $90,000 security deposit, and a $20,000 environmental oversight deposit).
Port staff and regulatory specialists described an operations plan that includes load checking, camera surveillance, computerized crushing equipment with positioned sprayers for dust control, annual asbestos awareness training, and the ability to reject contaminated loads. The Bay Area Air Quality Management District inspected the initial operations and passed a Ringlemann opacity test during legacy‑pile removal, staff said.
Port staff emphasized local economic participation requirements (60% of trucking related to third‑party deliveries to use local truckers) and an expected, though modest, number of direct jobs given the mechanized nature of the operation. The committee forwarded the lease with recommendation to the full Board.
What happens next: The full Board will consider the port lease and the related construction contract and services agreement; the construction contract and any future expanded recycling operations would be subject to additional environmental review and port/Board approvals.
