Source: Shutterstock

The concept of leveraging underutilized port assets to drive innovation and sustainability is gaining traction globally. A recently published paper authored by METRANS researcher Geraldine Knatz examines AltaSea at the Port of Los Angeles, a nonprofit organization operating a 35-acre ocean innovation campus located on a historic pier in the Los Angeles Outer Harbor. The site, City Dock No. 1, was built in anticipation of the Panama Canal opening and used for break-bulk cargo. Containerization eventually rendered its narrow footprint and limited backland obsolete, the warehouses fell into disuse, and the adjacent petrochemical terminal closed in 2011.

The Port worked with the Annenberg Foundation to create a separate nonprofit. A 50-year lease was signed in November 2013 with Rockefeller Philanthropy Advisors as fiscal sponsor, assignable to AltaSea once its tax-exempt status was approved .A modified leasing and valuation framework that formally recognizes non-compensatory public benefits, such as heritage conservation, public engagement, education and workforce development, enabled this public-private partnership (PPP) to revitalize an underutilized historic site. A 50-year agreement between the Port of Los Angeles and AltaSea was structured to allow the nonprofit to generate revenue for its long term viability, ensuring its own mission and the rehabilitation of historic structures. In place of rent, the Port accepts non-monetary compensation with defined performance metrics and annual reporting: student reach targets, weekly public access hours, biweekly tours, annual lecture series, curriculum development, post-doctoral and undergraduate programs, and on-site jobs. AltaSea may sublease at up to full market value, necessary to raise funds for building renovations, while also discounting rents for universities and start-ups that support its outreach. The model suggests a replicable approach for ports seeking to activate historic maritime sites while supporting nonprofit-led blue economy ecosystems.

Read the full paper here.