Title
PLN26-0043 - Alameda Point Site A Development Agreement Annual Review - Applicant: Alameda Point Partners, LLC. The applicant is requesting a periodic review of the Alameda Point Site A Development Agreement. The consideration of an Annual Report is not a project under CEQA. No further environmental review is required.
Body
To: Honorable President and
Members of the Planning Board
From: Steven Buckley, Secretary to the Board
EXECUTIVE SUMMARY
Alameda Municipal Code (AMC) Section 30-95.1 and Government Code Section 65865.1 require the Planning Board to conduct an annual review at a public hearing at which the applicant must demonstrate good faith compliance with the terms and conditions of the Alameda Point - Site A Development Agreement (DA). Alameda Point Partners, LLC (APP) has submitted a letter, included as Exhibit 1, demonstrating their good faith compliance with the terms and conditions of the DA.
Staff is recommending that the Planning Board adopt the resolution, included as Exhibit 2, to approve the annual report and find that the Developer has complied in good faith with the terms and conditions of the DA. The Development Agreement is included as Exhibit 3. The Development Plan is included as Exhibit 4.
BACKGROUND
On August 31, 2015, the City of Alameda (City) and Alameda Point Partners (APP or Developer) entered into a Development Agreement (DA) for the 68-acre Site A project at Alameda Point, pursuant to City Council Ordinance No. 3128. A First Amendment to the DA was entered into on November 14, 2022, pursuant to City Council Ordinance No. 3328.
Under Government Code Section 65865.1, Alameda Municipal Code (AMC) Section 30-95.1, and Article 5 of the Development Agreement, the Planning Board is required to hold a public hearing at which the applicant must demonstrate good faith compliance with the terms and conditions of the DA. In order to demonstrate good faith compliance, the applicant has submitted a letter covering the period of January 1 to December 31, 2025.
DISCUSSION
The DA does not individually set forth a milestone schedule, but Section 2.5 of the DA requires the Developer’s best efforts to timely undertake development in accordance with the requirements and conditions of the Disposition and Development Agreement for Site A, dated August 6, 2015 (and as most recently amended by its Sixth Amendment entered on September 22, 2022 (together with all amendments, the “DDA”)). The Sixth Amendment to the DDA contains an updated Milestone Schedule (Exhibit F of the DDA, as amended by its Sixth Amendment), which contains a variety of milestones for infrastructure, vertical development, and related property transactions, of which some are dates certain while others are triggered by the completion of specific events.
However, since 2023, the Site A Project has been subject to Economic Force Majeure (as defined in the DDA). As a result, the project’s milestones are currently tolled, and compliance with the milestone schedule should not be considered for this annual review period. In the annual review following the end of the Economic Force Majeure, staff will determine and report on the effect of tolling on the remaining milestones.
Notwithstanding the Economic Force Majeure, the Developer has engaged in the following activities in furtherance of its good faith efforts toward compliance with the terms of the Development Agreement:
1. The Developer worked with City staff to negotiate, finalize and execute the Eighth Operating Memorandum to the Disposition and Development Agreement (Site A - Phases 2 and 3) (the “8th Op. Memo”), which provides the City with cost reimbursement mechanism in the event that West Midway initiates construction on Site A Joint Infrastructure ahead of Site A’s project schedule in the DDA.
2. The Developer has met regularly with City staff to ensure that the Development Agreement and all subsequent approvals will be implemented in a timely fashion.
3. The Developer has engaged economic consultants to assess the markets for subject product types within the Site A project;
4. The Developer has worked with general contractors to update estimates for the Phase 2 Backbone Infrastructure and vertical improvement construction costs to develop the properties.
5. The Developer has worked with its Civil Engineer to explore options on how to optimize the development of the site in conjunction with West Midway’s efforts.
Staff believes the Developer has complied in good faith with the terms and conditions of the DA for the period of January 1 to December 31, 2025.
ENVIRONMENTAL REVIEW
Development Agreement annual review is not a project as defined in the CEQA Guidelines Section 15378, therefore, no further action is required and none of the conditions of CEQA Guidelines Section 15162 requiring additional environmental review exist.
RECOMMENDATION
Approve the draft resolution finding that the Developer has demonstrated good faith compliance with the terms and conditions of the Development Agreement (Exhibit 2).
Respectfully submitted,
Allen Tai
Planning Building and Transportation Director
Exhibits:
1. Annual Report Letter from Developers
2. Draft Resolution Approving Annual Report
3. Original Development Agreement
4. Development Plan