Assignment and Amendment of Trident
Ground Lease to Lineage Logistics
December 10, 2019
Item No. 6k supp
Date of Meeting December 10, 2019
Ground Lease Terms
• Background
• Today’s Actions:
– Assignment of Trident Seafoods Ground Lease to Lineage Logistics
– Amendment, Restatement, and Extension of Assigned Agreement
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Site location
• Buildings W-391 and W-392
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Lineage Logistics’ Recent Awards
• Winner of the 2019 Better Practice Award by the U.S.
Department of Energy’s (DOE) Better Plants program
• Named to Fast Company’s Annual List of The World’s Most
Innovative Companies for 2019
• Outstanding Supplier Achievement Award at the Safe Quality
Food Institute’s International Conference
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Ground Lease Terms
• Major Terms:
– Assignment: From Trident Seafoods to Lineage Logistics
– Amendment: Convert the existing four 5-year options to one 20-year term.
– Add Options: add two 10-year options, at tenant’s discretion
– Commencement Date:
• Assignment: on execution of Purchase and Sale Agreement and
• Amendment: January 1, 2020.
– Updated Area: Total area is 336,650 square feet (per updated survey)
– Rent: 1/1/2020 is $0.19/sf/mo., which represents an increase of 21.25% and is within the
market range for this use.
– Escalations:
• CPI: adjustments every 12 months
• Market rate: every 60 months, no downward adjustment.
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Ground Lease Terms
– Security Deposit: Letter of Credit or Surety Bond equal to 6 months of rent (compliant with Port Policy)
– Add, Update, and Replace with Port’s current term lease terms:
• Alterations; Ownership of Certain Installations (updated)
• Maintenance and Repairs (updated)
• Prevailing Wage (added)
• Common Areas (added)
• Insurance and Indemnity (updated)
• Damage and Destruction (updated)
• Assignment and Sublease (updated)
• Default (updated)
• Termination other than for default (updated and added)
• Surrender and Holding Over (updated)
• Environmental standards (updated and added)
– Sublease: 6,397 sf to Trident for three years (+2 one-year options to extend as R&D center)
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