A deal was struck yesterday that ends weeks of stalled negotiations over the sale of the lease for the New York Container Terminal. The agreement put an end to fears of limited future economic growth at the seaport, and a possible blow to the city's solid waste management plan.
The Ontario Teachers' Pension Plan agreed to a $51 million transaction to buy the remainder of the 12-year lease from Orient Overseas International.
Talks had broken down in acrimony after the Port Authority withheld consent for the sale, demanding Orient pay a $37 million consent fee, as well as a guaranteed $17 million in investments from Ontario to prevent the lease from being sold again for a quick profit. The consent fee represented a third of the investments made by the P.A. in the terminal.
In yesterday's deal, Ontario committed at least $30 million in capital improvements, and NYCT will pay $16 million in cash to the P.A. for reinvestment in port infrastructure. Also included is the Terminal's reimbursement of up to $5 million to the Port Authority for future roadway improvements.
"These commitments will ensure that the port terminal continues to prosper, and provide job growth and economic activity for Staten Island and the region for years to come," said P.A. spokesman Steve Coleman.
"It was a long, arduous process, but I'm pleased that we've got a fair outcome," said NYCT CEO Jim Devine.
Orient sought to sell its lease after shifting its business strategy away from port operations to focus on expanding its shipping line.
Had the deal not gone through, it was feared that Orient would likely ride out the rest of the lease with little investment toward port improvements, thus blocking plans to add a fourth berth to accommodate more ships; holding up a possible plan to handle containerized trash in the future, and threatening a marine commerce renaissance begun in recent years at the Terminal.
"This deal is a win-win for Staten Island and the region," said Sen. Charles Schumer, who last month was in the vanguard of the charge to demand a return to the table. "New York Container Terminal is Staten Island's largest commercial employer and this deal will enable NYCT to prosper and grow," Schumer said.
Had the deal not been struck, "it would have been a tragic loss," said Borough President James Molinaro. "We would have seen 12 years with nothing going on."
Councilman James Oddo (R-Mid-Island/Brooklyn) and Councilman Michael McMahon (D-North Shore) also pushed for a resolution to the impasse.
"There was a lot on the line here," Oddo said. The Container Terminal "is an economic engine not only for Staten Island, but for the entire city."
The Ontario Teachers' Pension Plan agreed to a $51 million transaction to buy the remainder of the 12-year lease from Orient Overseas International.
Talks had broken down in acrimony after the Port Authority withheld consent for the sale, demanding Orient pay a $37 million consent fee, as well as a guaranteed $17 million in investments from Ontario to prevent the lease from being sold again for a quick profit. The consent fee represented a third of the investments made by the P.A. in the terminal.
In yesterday's deal, Ontario committed at least $30 million in capital improvements, and NYCT will pay $16 million in cash to the P.A. for reinvestment in port infrastructure. Also included is the Terminal's reimbursement of up to $5 million to the Port Authority for future roadway improvements.
"These commitments will ensure that the port terminal continues to prosper, and provide job growth and economic activity for Staten Island and the region for years to come," said P.A. spokesman Steve Coleman.
"It was a long, arduous process, but I'm pleased that we've got a fair outcome," said NYCT CEO Jim Devine.
Orient sought to sell its lease after shifting its business strategy away from port operations to focus on expanding its shipping line.
Had the deal not gone through, it was feared that Orient would likely ride out the rest of the lease with little investment toward port improvements, thus blocking plans to add a fourth berth to accommodate more ships; holding up a possible plan to handle containerized trash in the future, and threatening a marine commerce renaissance begun in recent years at the Terminal.
"This deal is a win-win for Staten Island and the region," said Sen. Charles Schumer, who last month was in the vanguard of the charge to demand a return to the table. "New York Container Terminal is Staten Island's largest commercial employer and this deal will enable NYCT to prosper and grow," Schumer said.
Had the deal not been struck, "it would have been a tragic loss," said Borough President James Molinaro. "We would have seen 12 years with nothing going on."
Councilman James Oddo (R-Mid-Island/Brooklyn) and Councilman Michael McMahon (D-North Shore) also pushed for a resolution to the impasse.
"There was a lot on the line here," Oddo said. The Container Terminal "is an economic engine not only for Staten Island, but for the entire city."