Item No.:                    7a_supp 
Meeting Date:          February 10, 2015 
Real Estate Division Policy
Briefing

Competitive Offering vs. Direct
Negotiation 
Purpose: To identify when circumstances are
present that warrant competitive offering and
when they warrant direct negotiation

Rationale: Competitive processes generally result in
most effective result for the public, however, it 
Does not recognize pre-existing business
relationships 
Does not permit effective tenant mix to minimize risk 
Does not yield best result if there is a limited field of
interested parties 
Does not advance broader Port initiatives 
Job creation 
Green development 
Infill development

Competitive Process Applicability 
Exclusions: 
Leases for terms of 10 years or less 
Airline signatory lease and operating
agreement  SLOA 
Leases with Federal, State, Local government 
Leases or easements with public utility 
On-field freight forwarding operations

Competitive Process Alternatives 
Published public offering for RFI, RFQ, RFP, etc. 
Listing with qualified commercial brokerages 
Targeted direct marketing to industry specific
enterprises 
Offering published in trade and business journals

Direct Negotiation Exceptions 
Renewal of existing tenant relationship,
presuming tenant is in good standing 
Expansion of existing tenant premises, presuming
tenant is in good standing 
Lease would permit expansion of tenant mix to
suit the Port's purposes by broadening the
business base either horizontally or vertically 
Lease would promote an otherwise appropriate
public use as determined by current initiatives

Direct Negotiation Exceptions 
An unsolicited opportunity that advances a public
use as determined by current initiatives 
Permits effective use of property otherwise
encumbered by physical, legal, or environmental
hurdles that makes it otherwise of limited utility 
Subsequent to an unsuccessful competitive
process, a targeted opportunity presents itself

Direct Negotiation Protocol 
To commence a direct negotiation, the following
conditions/constraints attach: 
Staff will advise the CEO that a specific negotiation
falls under one of the exceptions for approval 
If approved, staff will commence negotiations on an
exploratory basis to confirm the merits of the
exception 
Upon commencement of formal negotiations, staff will
advise the CEO, who will, in turn, advise the
commission 
Other appropriate due diligence/financial
analysis/approval protocol applies

Questions