The Pioneer Bluff District on the Sacramento River has been earmarked for de-industrialization, and the future plan for that industrial area, which is currently home to four oil terminals, includes real estate community development and riverfront mix use.

A City official told OPIS on Tuesday that besides Shell, the other three oil terminals at Pioneer Bluff belong to Buckeye, Chevron and ConocoPhillips. There are two terminals in West Sacramento, and the other two are in Sacramento.

So far, there are no active negotiations with Buckeye, Chevron and ConocoPhillips to decommission and relocate their terminals, he said. However, the cities of West Sacramento and Sacramento are planning to relocate these oil terminals and clean up that area in the future, but no dates have been set for these three terminals.

The City of West Sacramento said that “the deal outlines a creative public-private transaction which will allow Shell to phase out operations at the facility within the next 4 years, by March 2021.”

A Shell spokesman told OPIS on Tuesday that “Shell continually reviews and actively manages its portfolio, and frequently considers a wide range of opportunities. This is an ongoing process to help ensure we have the right mix of assets to produce value for our shareholders and deliver our business strategy.”

Shell does not comment on the specifics of commercial transactions.

West Sacramento Mayor Christopher Cabaldon said, “This transaction is the next and biggest step forward so far in the planned de-industrialization of West Sacramento’s Pioneer Bluff District.”

“The Shell facility is one of four fuel terminals on both sides of the river which have been viewed as immovable obstacles to taking back this stretch of the waterfront to make a spectacular new district for life along the river. Building on the momentum of exciting placemaking in the Washington area and The Bridge District, as well as miles of trails along the riverbank, the agreement demonstrates West Sacramento’s resolve and leadership in creating great attractions and neighborhoods worthy of our region’s central natural asset.”

The demolition and clean-up of the six-acre Shell facility, which has been in operation since the 1940s, sends another strong signal to the real estate development community that the transition of the Pioneer Bluff district from legacy industrial operations to future riverfront mixed-use development continues to move forward, according to the City of West Sacramento.

This latest agreement with Shell follows the relocation of the Cemex facility to the Port’s ship channel in 2008, and is an important first step toward relocation of all the fuel terminal facilities on the Sacramento River to more appropriate industrial locations in the region, said Yolo County Supervisor and Port Commission Chair Oscar Villegas.

The agreement provides a framework for Shell to phase out operations and to clean up all contamination on the property under the supervision of the Regional Water Quality Control Board.

It also secures a strategic parcel which is located at the crux of future traffic and bike/pedestrian infrastructure.

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