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The City of Oakland has cancelled a lease agreement for a coal terminal which had raised controversy. The city said the it cancelled the project because of a lack of progress on the ground. The terminal was in courts from 2016, when Oakland voted to ban ship coal using city land.
Before the 2016 vote, an advisory panel to Oakland’s city council concluded that coal trains that are transiting the city would increase air pollution. However, the operator of the terminal noted that the ban of a legal commodity like coal would send the wrong signal about Oakland.
When Oakland cancelled the lease agreement, it mentioned that this decision is not related to coal or to public health. It stated that it decided to cancel the agreement because the developed did not meet its obligations to perform the work it agreed to do. In fact, leaders of the cited informed that they were not aware of the developer’s plan to handle coal at the terminal, when the city signed the lease agreement.
What is more, Oakland is seeking $1.6 million in damages for nonperformance.
The 20-acre facility would have been located on the city’s half of the previous Oakland Army Terminal, which was decomissioned in 2006 and split between Oakland and the Port of Oakland.
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