PORTLAND, OR-The Port of Portland Commission has approved a 20-year ground lease for 11 acres at the city’s 16-acre Rivergate Industrial Yard. Arena, WI-based agri-producer Hartung Brothers Inc. is the new leaseholder.
Located next to the Steinfeld Products Co. pickle processing plant, Hartung plans to use the space to build and operate a cucumber-sorting and pickle-brining storage facility. Upon completion, Hartung will supply brined pickles to Steinfeld, a 78-year-old firm that was purchased by Dean Foods Inc. of Franklin Park, IL in 1999.
The port developed the industrial yard in the mid-1980s for firms that need open storage space. Brown-Strauss Steel Inc., which has leased the yard since 1989, plans to relocate to a larger facility in Longview, WA in December.
According to a spokesman for the port, Hartung’s 20-year lease includes two five-year renewal options. The initial rent on the yard space is $17,000 per month commencing May 1, 2002 due to rent credits earned by Hartung for performing certain property enhancements.
At the beginning of the 10th year of the lease, and at the beginning of each option period, if exercised, the rent will be adjusted to the fair market rental value of the property but not less than the current rent. Except for those particular milestones, the rent is subject to adjustment every five years based on the increase of the Consumer Price Index over the previous five-year period, but no more than 3% per year and no less than the current rent.