PUBLIC NOTICE

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NOTICE OF INTENTION, PURSUANT TO LOUISIANA REVISED STATUTE 33:4717.2, REGARDING THE TRANSFER OF PROPERTY BY A POLITICAL SUBDIVISION FOR INDUSTRIAL INDUCEMENT PURPOSES

The BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS (Board) hereby notices the general public of its intention to enter into a lease agreement with SUNRISE FOODS INTERNATIONAL, INC. (Sunrise Foods) for Board-owned property (Lease), which proposed Lease contains an industrial inducement for the rehabilitation and improvement of said property. According to Louisiana Revised Statute 33:4717.2 (the Industrial Inducement Statute), the Board provides the following information concerning this transfer for industrial inducement purposes:

I. General Description of the Proposed Transfer

Pursuant to statutory and legal authority, the Board intends to lease to Sunrise Foods the Alabo Street Terminal including the open wharf area, marshalling yard, and all improvements on said property, which property is described in more detail in Section II herein (the Property). As part of the proposed Lease, the Board will provide a series of payments to Sunrise Foods totaling ten million dollars ($10,000,000) (Industrial Inducement Payment) as an industrial inducement to develop the Property, and to construct new improvements on the Property, which the Board will own upon completion. These improvements include the installation of new equipment for conveying bulk cargo shipments and the construction of a new covered shelter structure (Improvements). All Improvements shall be subject to prior approval by the Board, and any construction on the Property shall require the necessary permits to be issued by the Board.

II. Description of the Property to be Transferred

For industrial inducement, the Board intends to provide Sunrise Foods the Lease together with a series of payments totaling $10,000,000, which funds will be purposed for the development and construction of improvements at the Alabo Street Terminal, which currently consists of a covered shed, an open wharf area, and a marshalling yard as more particularly described as follows:

A.

A CERTAIN TRACT OR PARCEL OF GROUND, together with all of the buildings and improvements thereon and all of the rights, ways, privileges, servitudes, appurtenances and advantages thereunto belonging or in anywise appertaining, situated in the Third Municipal District of the City of New Orleans, Parish of Orleans, State of Louisiana, but LESS and EXCEPT any and all rights therein acquired by Louisiana and Southern Railway Company, its successors and assigns, by act passed before William H. Talbot, Notary Public, on March 22, 1927, registered in COB 418 folio 531, said tract or parcel of ground being more particularly described as follows:

A tract of ground bounded on the north (lakeside) by Chartres Street, on the east (downstream) by Alabo (formerly Adams) Street, on the west (upstream) by Charbonnet Street, and on the south (riverside) by a line roughly paralleling the Mississippi River separating said tract from Tract or Plot B described in an act passed before A.J. Peters, late Notary Public, on February 18, 1918, registered in COB 296 folio 228; and according to a survey made by Guy J. Seghers, Surveyor, dated August 12, 1963, print of which is annexed for reference to an act before Felix H. Lapeyre, Notary Public for the Parish of Orleans, dated October 18, 1963, said tract measures 216 feet 6 inches 1 line front on Chartres Street, 992 feet 6 lines on Alabo Street, 939 feet 11 inches 4 lines on Charbonnet Street and 221 feet 9 inches 2 lines on the riverside boundary separating said tract from said Tract or Plot B.

B.

A CERTAIN TRACT OF LAND, together with all improvements thereon and all of the rights, ways, servitudes, advantages and appurtenances thereunto belonging or in anywise appertaining, situated and lying on the south or riverward side of the tract and bounded on the east (downstream) by the prolongation of the west line of Alabo (formerly Adams) Street, on the west (upstream) by the prolongation of the east line of Charbonnet Street, and on the south by the Mississippi River; and according to the survey of Guy J. Seghers, Surveyor, said tract measures 221 feet 9 inches and 2 lines on its north (lakeside) boundary separating said tract from the tract, 268 feet 6 inches on its east (downstream) boundary (i.e., the prolongation of the west line of Alabo Street), and 273 feet 6 inches on its west (upstream) boundary (i.e., the prolongation of the east line of Charbonnet Street). This parcel includes Lots A and B thereof sold by New Orleans Butchers Co. Operative Abattior Co. to Board of Levee Commissioners of New Orleans by acts recorded in COB 270, folio 355 (Lot A) on March 2, 1915 and COB 296, folio 228 (Lot B) on February 19, 1918.

C.

A CERTAIN WHARF STRUCTURE, approximately 230 feet in width, with its length running along the Mississippi River bank approximately 1,317 feet, from approximately Tupelo Street (projected) to Flood Street (projected).

III. The Proposed Consideration to be Given in Exchange for the Subject Property

The Board anticipates it will receive value commensurate with the value of the property interests the Board intends to transfer to Sunrise Foods for industrial inducement as follows:

a. Rent under the Lease. Sunrise Foods shall pay to Board annual fixed rent in the amount of Two Million One hundred and Ten Thousand Dollars ($2,110,000) (Fixed Rent), which shall be payable in equal monthly installments of One Hundred Seventy-Five Thousand Eight Hundred Thirty-Three Dollars and 34/100 ($175,833.34). In addition to the Fixed Rent, Sunrise Foods shall pay Board sixty cents ($0.60) per short ton of bulk cargo and three dollars and ninety-four cents ($3.94) per short ton of breakbulk cargo (Variable Rental Rates) that is (i) delivered from or received at the Premises and loaded onto or discharged by Lessee from a waterborne vessel; or (ii) directly discharged by Lessee from a waterborne vessel to another waterborne vessel; or (iii) directly discharged by Lessee to or from a waterborne vessel to or from a railroad car or truck, when the vessel activity is within the First Call Area or at any other Board facility specifically approved by the Board for such activity under the terms of this Lease (the Variable Rent). The Variable Rent shall be paid monthly based on the number of short tons of cargo moved in the previous month. The Fixed Rent and the Variable Rent shall be subject to CPI-U adjustments on January 1, 2026 and every two (2) years thereafter during the term of the agreement.

b. Developed Property and New Construction at the Alabo Street Terminal. The Industrial Inducement Payment will be used for the development of the Board-owned Alabo Street Terminal. Sunrise Foods will acquire and install new industrial equipment capable of handling bulk cargo shipments and will build new construction including a covered shelter structure on the open portion of the wharf structure. The Board will own these Improvements to the Property upon completion of the construction and installation of said equipment. These developments will optimize the Alabo Street Terminal for efficiency and use while helping drive trade for local and domestic commerce.

c. Maritime and Railroad Commerce. Sunrise Foods operations at the Property during the term of the proposed Lease will contribute to the local and domestic waterborne and rail-borne commerce. The proposed Lease between the Board and Sunrise Foods is intended to increase the trade of bulk cargo and increase multimodal connectivity within the Boards jurisdiction. Sunrise Foods is an organic agricultural trading company. Its operations at the Property will include importing organic agricultural food products, processing, packaging, and transporting finished products throughout the United States via rail, water, and road distribution channels. In no event shall Sunrise Foods use the Property for any activities that could result in an adverse environmental impact on the Property or any adjacent property, whether owned by the Board or not.

IV. The Proposed Contract is on File for Public Inspection in the Office of the Board of Commissioners of the Port of New Orleans

The completed Lease is available to the general public for inspection during regular business hours at the offices of the BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, 1350 Port of New Orleans Place, New Orleans, Louisiana 70130. Any member of the public may contact Monique Singley at (504) 528-3202 between the hours of 9:00 A.M. and 4:00 P.M. to schedule a time to inspect the Lease.

V. Appraised Value of the Subject Property

A real estate appraisal was conducted, dated December 25, 2023, and the Property appraised for Eight Million, Three Hundred Fifty Thousand Dollars and No/100 ($8,350,000.00) with a leased fee interest of Twelve Million, Seven Hundred Fifty Thousand Dollars and No/100 ($12,750,000.00).

VI. Date, Time, and Place at Which Objections to this Proposed Transfer Will be Received

Objections to the proposed Lease shall be received on June 27, 2024, at 12:00 P.M., at the offices of the BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, 1350 Port of New Orleans Place, New Orleans, Louisiana 70130, 1st Floor Auditorium.

93100-JUN 13-20-2T