FORT LAUDERDALE, FL - Chiquita Brands International is looking to terminate its lease with Florida’s Port Everglades, where it currently holds 13.1 acres, 20 months early. The issue will be put to a vote by the county commission on Jan. 24th.
The company operates 14,097-square-feet of offices and 28,352-square-feet of warehouses to support its banana shipments, according to the South Florida Business Journal, which it would give up with the termination. Under the terms, however, it would keep 6.59 acres of land under a short-term lease.
"The early termination of the Chiquita lease agreement will benefit the port by creating opportunities for the currently dormant Chiquita land and the warehouse and office space to be made available for other Port users to expand their businesses and generate new revenue through both ship calls and cargo throughput,” said a county memo, according to the report. "The port will also continue to receive grid revenue from Chiquita for the 6.59 acre parcel they will continue to use."
The move would not be a complete exit for the company’s operations at the port, with a separate warehouse lease in place for a banana-ripening facility that it will keep.
If the termination goes through, it would go into effect on March 1st, and Chiquita would be responsible for paying the county a $500,000 fee.
It would also be responsible for any damages or repairs needed up to a possible $300,000 letter of credit to return to Chiquita by the county.
The memo stated that Port Everglades officials contacted Chiquita about its plans, to which the company said it wanted to divest its terminal and base all of its shipments out of MSC’s terminal.
If successful, this would not affect Chiquita’s headquarters in Dania Beach.
