Tidelands Use and Occupancy Permit to The Hertz Corporation at Pacific Highway and West Palm Street

The proposed project is a new Tidelands Use and Occupancy Permit (TUOP) to the Hertz Corporation (Tenant) for the use of up to approximately 131,677 square feet of tideland and upland area (proposed area) located on Pacific Highway near Palm Street in the city of San Diego, California. Under the new TUOP, the area proposed for use will be used only and exclusively for the purpose of supporting rental car operations, specifically, the storage of vehicles and transportation of vehicles, and for no other purpose whatsoever without the prior written consent of the Executive Director of the District. The San Diego Unified Port District (District) and Tenant had previously entered into a lease agreement (Lease) dated January 13, 2023 (Clerk Document No. 60386) for the exclusive use of approximately 131,941 square feet of a larger joint-use area (Leased Premises) located at 3202 North Harbor Drive in the city of San Diego, California. The area under the previous Lease was solely used for automobile rental services such as the renting, servicing, storage, and maintenance of rental cars. The proposed project would not increase existing operations, but would solely relocate an ancillary area of Hertz’s operations to a new location in closer proximity to the San Diego International Airport Rental Car Center. Additionally, the new TUOP would not change the existing use of the proposed area, as it has historically been used for automobile rental business operations and the maintenance of automobiles used in said operations. The TUOP is anticipated to have a term of approximately five (5) years. The TUOP may be terminated by the Executive Director of District or their duly authorized representative, or Tenant, as a matter of right and without cause at any time upon giving of ninety (90) days’ notice in writing to the other party of such termination. Due to its nature and limited scope, the proposed TUOP would generate a minor amount of vehicle trips and would require limited use of equipment. Therefore, impacts related to air quality, greenhouse gas emissions, and transportation and traffic are not anticipated to occur. Furthermore, the new TUOP would not allow any new development, construction, or improvements to the proposed area.