Oakland hit with new suit over coal project

Lawyers for a planned marine terminal in Oakland that would ship coal and other materials overseas sued the city Tuesday, saying local officials are trying to thwart the project and failed to keep their side of the bargain.

It will be the second major legal fight over developer Phil Tagami’s Oakland Bulk and Oversized Terminal. In May, a federal judge ruled that the city could not ban the storage and handling of coal and then retroactively apply the prohibition to Tagami’s project. The city is appealing the decision.

Now, the 62-page lawsuit says, Oakland leaders are refusing to meet with the development team or turn the property over.

“The city repeatedly and consistently insists that it will not take any action to move the project forward unless and until OBOT agrees to construct a ‘ban compliant’ terminal,” said the lawsuit filed Tuesday in Alameda County Superior Court. “After losing its legal battle against the project, the city has resolved to engage in a bureaucratic attack on the project with the hope of causing its demise.”

Alex Katz, a spokesman for the city attorney’s office, said officials could not comment because they have not yet been served or had time to review the filing.

The suit is asking for unspecific damages and an injunction that would prohibit the city from interfering with the terminal project.

“We think it’s very unfortunate it came to this,” said David Smith, a lawyer for the project. “We reached out to the city over and over to resolve this and move the project forward.”

The lawsuit comes several weeks after city officials accused the developers of violating their lease agreement by repeatedly failing to meet deadlines and construction milestones. Lawyers for Tagami, a longtime friend of Gov. Jerry Brown, said any delays were the city’s fault.

The 66-year lease, signed in 2016, laid out plans to develop 34 acres known as the West Gateway at the former Oakland Army Base. It was billed as a state-of-theart, rail-to-ship logistics center with access to a deepwater port that would bring jobs to West Oakland.

Environmental groups have cheered the city’s efforts to keep the proposal from moving forward. City leaders have said coal dust from the project would pollute the air and pose risks to workers and nearby residents.

“The city has resolved to engage in a bureaucratic attack on the project with the hope of causing its demise.” Lawsuit filed in Alameda County Superior Court