Council approves Homeport lease

Tenant will supply U.S. Navy with docking services and emergency provisions. On March 9, 2005, the City Council approved a draft lease submitted by the City’s Economic Development Corporation for a 40,000 square-foot portion of the Staten Island Homeport Pier to a tenant to be chosen by the U.S. Navy’s Military Sealift Command. The chosen contractor will provide layberthing services to U.S. Navy vessels, allowing the ships to dock, be maintained in a state of readiness, and be rapidly supplied when called to send emergency provisions to troops. The lease area includes five buildings within the southern portion of the Homeport Pier.

Under the lease, rent to the City for docking one ship is set at $450,000 per year payable at $37,500 per month, increasing to $675,000 per year, $56,250 per month, for a second U.S. Navy vessel. The lease establishes an initial seven-month term, expected to commence in January 2006, with five options that could extend the lease term to December 2010. The approved lease does not set the proposed rent increase for the option periods. Under the lease, the contractor will be responsible for all needed improvements, dredging and utilities.

Proposals for the layberthing services contract were due on March 16, 2005 to the U.S. Navy. As of March 22nd, EDC reported to CityLand that the contract had not been awarded and estimated it could take up to six months.

Council: Homeport Layberth Facility Lease (March 9, 2005). CITYADMIN

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