The Board of Trustees of the Galveston Wharves, in a special meeting today, voted unanimously to approve an option agreement with Texas, Mexico & Pacific Railroad, LLC for the lease of port property for the construction of a rail-served bulk cargo terminal. News Release
The property that is subject to the lease agreement is a 185-acre tract located on the northeast corner of Pelican Island. Approval of the lease agreement itself, which was part of the agenda item the board considered, was pulled for further study, according to Port Director Steve Cernak.
Cernak said the lease will be considered for approval no later than March 31. The option agreement and key business points, which were approved today, allows the company to begin the process needed to design and build the facility, such as permitting, Cernak said.
"It'll allow due diligence to start," Cernak said. "There's a fairly long road to travel upon before it's a reality."
According to Cernak, the lease has a term of 39 years, and three 20-year options to extend the lease of the property.
"The reason for the length of the lease is that there is a rather large investment involved, on their part," Cernak said.
The board had deferred discussions of the lease agreements with the railroad company at its meeting on December 15.
The board met in executive session to discuss various topics, including litigation issues, real estate matters and personnel matters. No action was taken on the items.
No other action items were on the agenda. Trustee John Manlove was absent. Agenda