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Insight Terminal Solutions OBOT Report: How City Of Oakland Stymied BCDC Permits

Oakland – This Insight Terminal Solutions, Oakland Bulk and Oversized Terminal or OBOT Update features a key example of the lengths the City of Oakland went to block and stymie the development of OBOT.

This is information provided to Zennie62Media as part of a giant list of files and because Zennie62Media was commissioned by Insight Terminal Solutions to get out the truth about why the OBOT project was held up, and the City of Oakland’s actions that the developer, Mr. Tagami, has proven to be illegal via the court victory in overturning the Oakland Coal Ban.

(And, as a personal note, this project is one that I, Zennie Abraham, have supported since it was announced as an economic development goal by Oakland Sharing The Vision in 1991. My background is in economic development, and primarily for the City of Oakland starting in 1986, before working as a consultant, then moving into media. Many of the City of Oakland people who had a hand in this project are gone; only a handful remain, including Mr. Tagami, Pat Cashman, and myself.)

According to the letter posted below from lawyer Marc Stice of Stice and Block LLP and to Oakland City Administrator Sabrina Landreith, Phillip H. Tagami (Phil Tagami), the main project developer working with Insight Terminal Solutions, had gained approvals from the Bay Conservation and Development Commission, but they were contingent on actions by the City of Oakland, acting in its role as contract developer partner in the OBOT project.


The letter points to the City of Oakland not acting in what is called “good faith” – where the City of Oakland would normally carry out its work as contract developer partner in the OBOT project, in the case of OBOT, it did not do that.

Note the date of the letter: September 28, 2018. That’s months after Phil Tagami won his court battle to have the “Oakland Coal Ban” overturned. Contrary to erroneous and race-bating talk, silly and incorrect reports of “black leaders” being lobbied by Insight Terminal Solutions CEO John Siegel were just that, and had nothing, zero do with the overturning of the “Oakland Coal Ban”: Phil Tagami did.

The fact is that the City of Oakland was a main partner in pre-development of the OBOT bulk terminal. Moreover, and contrary to more untruths, the City of Oakland’s focus was the development of a low emissions bulk terminal. Now former Oakland Economic Development Director Fred Blackwell said that the OBOT was to be environmentally-friendly. Watch:

Moreover, and something the media fails to report, Phil Tagami himself insisted on the use of covered rail “hopper” cars, and even fired one uncooperative terminal operations partner leading to the entry of Insight Terminal Solutions into the project.

Here’s the letter, and with addresses, phone numbers, and emails removed; the City of Oakland’s publicly-known physical address for public officials remains, but the specific phone numbers for those officials were removed, as well.

Marc Stice

September 28, 2018

City of Oakland

Attention: City Administrator
City Hall

1 Frank H. Ogawa Plaza, 3rd. Fl.
Oakland, CA 94612

Office of the City Attorney

Attn: Attention: Supervisor, Real Estate Unit
City Hall

One Frank H. Ogawa Plaza, 6th Fl.

Oakland, CA 94612

Reference: Oakland Army Base — Public Access Improvements Required Under
Amendment One to BCDC Permit M2013. 013, Dated June 5, 2014

Dear Ms. Landreith and Ms. Patel:

This letter is delivered in conjunction with that certain Army Base Gateway Redevelopment Project Ground Lease for West Gateway (the “WGW Lease”), dated as of February 16, 2016, and entered into by and between the City of Oakland (“City”) and Oakland Bulk and Oversized Terminal, LLC (“OBOT”). Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the WGW Lease.

This letter is to inform you that OBOT has elected, under the reservation ofrights set forth below, to proceed with the construction of the public access improvements (the “West Burma Public Access Improvements”) described in the plan set titled “BCDC Public Access, Oakland Army Base, 100% Construction Documents” and dated September 1, 2017” as such plans are updated to meet the requirements of BCDC’s conditional approval dated October 17, 2017 (the “BCDC Conditional Approval”). The West Burma Public Access Improvements were included as part of the public improvements to be constructed under Amendment One to Permit M2013.013 issued by the Bay Conservation and Development Commission (“BCDC”) on June 5, 2014 (as amended, the “Burma Road BCDC Permit”). As you are aware, the City, in an effort to complete the public improvements of the Oakland Army Base redevelopment project and close out the related permits, has requested that California Capital & Investment Group, Inc. (“CCIG”) join in a request to amend the Burma Road BCDC Permit to (1) remove CCIG as a permittee and (2) make certain amendments to the permitted work/required mitigation, including without limitation, the removal of the West Burma Public Access Improvements (the “Burma Road BCDC Permit Amendment Application”). (See letters dated May 4, 2018 and July 26,

Stice & Block, LLP

City of Oakland
September 28, 2018
Page 2

2018.) In concert with such letters, the City requested that OBOT submit an application for a BCDC Permit related to improvements to the WGW Lease premises with the hopes that the mitigation required by such future BCDC permits would equal or exceed what is required by the West Burma Public Access Improvements and therefore mollify BCDC and assist in its approval of the requested amendment.

Thereafter, the City sent its letter dated September 21, 2018, alleging that OBOT was in default of its Minimum Project obligations under the WGW Ground Lease. OBOT provided the City with written notice that while OBOT disagreed with such allegation, it is proceeding with its efforts to design, permit and construct the West Gateway bulk terminal project to the extent it is able to do so given one or more Force Majeure matters.
In furtherance of such efforts, OBOT has had continued communications with BCDC regarding a proposed application for a BCDC permit for a perimeter fence for the WGW Lease premises and a subsequent application for a BCDC permit for the West Gateway bulk terminal project. It is OBOT’s understanding from these communications that (1) BCDC staff is going to deny the Burma Road BCDC Permit Amendment Application and are threatening to initiate an enforcement action for failure to provide the improvements required by the Burma Road BCDC Permit and (2) any resistance to such enforcement efforts would delay consideration and issuance of further BCDC permits related to any portion of the Oakland Army Base redevelopment project.

In order to avoid such delays, OBOT desires to proceed with the construction of the West Burma Public Access Improvements in a manner that complies with the CAB Public Improvement Community Benefits. OBOT will advance the costs for such work, subject to a reservation of a right of reimbursement from the City for the third party costs related to the construction of improvements that are not credited as mitigation for BCDC permits issued for OBOT improvements to the WGW Lease premises (including, without limitation, wharf, rail, and the terminal). OBOT does not opine or guarantee whether all or any portion of the West Burma Public Access Improvements costs will be credited to any such mitigation to the WGW Lease premises.

The construction of the West Burma Public Access Improvements will require:

(a) The City and CCIG to request the amendment of the West Burma BCDC Permit
required under the BCDC Conditional Approval;

(b) The City to provide OBOT with a right of entry over City property reasonably
necessary to complete the construction of the West Burma Public Access
easements (as contemplated by Section 6.2.13 of the WGW Lease); and

(0) City approval of the final plans responding to the plan changes required by the
BCDC Conditional Approval.

City of Oakland
September 28, 2018
Page 3

Please confirm that that the City is willing to work in good faith to resolve/provide such matters and OBOT will proceed with the drafting of the necessary documents for the City review. Failure to provide such confirmation will be deemed a further indication that the City is seeking to frustrate the development of a bulk terminal at the WGW Lease premises. Please do not hesitate to contact me regarding this matter.

Marc a Stice, Esq.

cc: Mr. Phil Tagami, via electronic mail
Mr. Mark McClure, Via electronic mail
Mr. Skyler Sanders, via electronic mail
Ms. Elizabeth Lake, Via electronic mail
Mr. Doug Cole, via electronic mail
Mr. Patrick Cashman, Via electronic mail
Mr. John Monetta, Via electronic mail
Mr. Brad McCrea, Via electronic mail

Stay tuned.

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