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PORTLAND-The Port of Portland board of commissioners approved this week a new lease and development agreement with Toyota Motor Sales USA that will keep the Tokyo-based car manufacturer in Portland for at least another 15 years.

As per the agreement, Toyota, which has processed autos at the port since the 1970s, will consolidate its operations onto 82 acres by the river at Terminal 4 and spend $30 million developing six new buildings. The new structures will include a 68,243-sf building that will be used for office space, quality assurance and adding post-production options to vehicles, a 20,517-sf body shop, a 3,959-sf car wash, a fueling station and a guard house.Toyota will lease the site for at least 15 years at a base rate of $1.4 million that would be adjusted each year according to CPI-U. The Port, for its part, would invest $9 million in facility upgrades and dock work at the terminal, including environmental improvements to the property.

Toyota currently leases around 104 acres; 65 acres down by the river for parking cars and another 40 acres about a mile up a hill behind Terminal 4 that holds aging metal buildings used for processing the cars before shipment to both regional and national dealerships. The Tokyo-based car manufacturer’s rent payments total about $1 million annually.

The agreement has changed somewhat since negotiations began last year. When GlobeSt.com first reported on the negotiations last October, the deal was for 95 acres at Terminal 4, the Port was going to spend $35.5 million to develop the entire site for Toyota and Toyota’s rent payments were going to incorporate the costs of the site’s development. Assuming a 9% annual return on the port’s investment, Toyota’s rent payments would have been closer to $3 million annually.

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