Title
Workshop to Provide Direction on the Development of an Exclusive Negotiation Agreement (ENA) Process with Neptune Beach Surf Club at Enterprise Park. (Recreation 10051400)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
Neptune Beach Surf Club (NBSC) has expressed interest in developing a Surf Park on a portion of Enterprise Park. Staff is seeking direction from the City Council on the proposed ENA process for the proposed development of a Surf Park at Enterprise Park.
The proposed ENA process for Enterprise Park presents an opportunity to use private development interest to advance a broader public benefit. During the ENA period, the City of Alameda (City) would lead a comprehensive, community-driven Master Plan process for the approximately 21-acre Enterprise Park while leveraging developer-funded professional planning and technical resources. The Master Plan would establish a long-term vision for the entire park and would move forward regardless of whether a proposed private development is ultimately included in the final plan.
BACKGROUND
Enterprise Park is an approximately 21-acre waterfront park on the south side of Alameda Point that currently supports a variety of active and passive recreational uses. The Park does not have a comprehensive Master Plan.
In spring of 2025, NBSC approached the City with an opportunity to develop a Surf Park at Enterprise Park. A surf park is a commercial recreation facility built around an artificial wave pool that generates rideable, surfable waves on demand, independent of ocean conditions. The pool is typically a large engineered basin, often several acres, where waves are produced mechanically or pneumatically on a programmed schedule so surfers of different skill levels can ride consistent, repeatable waves
May 3, 2025, NBSC launched a community-wide survey for the proposed Surf Park, with over 1,200 responses.
May 17, 2025, Alameda Recreation and Park Department (ARPD) and NBSC hosted a community pop-up event held at Enterprise Park with approximately 150 community members in attendance. Staff gathered feedback from an interactive process about the proposed use of Enterprise Park.
July 10, 2025, Staff and NBSC presented the Surf Park proposal to the Recreation and Parks Commission (Commission). The Commission voted unanimously to explore the proposal further.
October 21, 2025, Staff presented the Surf Park proposal during closed session with City Council. Staff received direction from City Council to explore an ENA with NBSC.
July 7, 2026, Staff presented the draft ENA with NBSC during closed session with City Council. Staff received direction to return to City Council for a Community Workshop for the Surf Park and ENA process.
DISCUSSION
Exclusive Negotiation Agreement
An ENA is a tool that provides the City and a prospective development partner with a defined period of time to work together to evaluate a potential project, complete due diligence, and determine whether mutually acceptable terms can be developed. An ENA does not approve a project, lease, or development agreement. Instead, it establishes a structured planning and negotiation period while the City retains its discretionary decision-making authority.
If the parties are unable to develop a project or agreement that meets the City's objectives, the ENA may conclude without a development moving forward. Any future project approval, lease, development agreement, environmental review, or other discretionary action would occur through the applicable public process and would require separate consideration.
Community Benefit and Enterprise Park Master Plan
The primary community benefit of the proposed ENA would be to advance a broader public planning objective beyond the potential private development. During the ENA period, the City would lead preparation of a comprehensive Master Plan for Enterprise Park.
The developer would fund a qualified third-party landscape design firm and related planning resources to support the process. The City would direct the work, establish the public objectives, guide community engagement, and retain decision-making authority regarding the preferred plan. This allows the City to leverage private development resources to complete a community planning effort that provides long-term value to the park system.
Key community benefits include:
• Developer-funded professional resources.
o Planning, landscape architecture, and certain technical resources would be funded by the developer rather than relying solely on City resources.
• Master Planning for the entire park.
o The process would evaluate the approximately 21-acre Enterprise Park, not only the area associated with a potential private development.
• Multiple alternatives.
o The community would have an opportunity to review and provide feedback on multiple Master Plan concepts before a preferred plan is developed.
• Long-term public value.
o The Master Plan would provide a framework for future park improvements and investment even if the proposed private development does not ultimately move forward.
Proposed Master Planning Process
• The Master Plan process will be City-led and community-driven. The final engagement schedule would be refined as the process moves forward, the anticipated framework includes:
• Community kick-off and goal-setting workshop to identify priorities, opportunities, and concerns for Enterprise Park.
• Preparation of multiple Master Plan alternatives based on community input and technical analysis.
• Community review of the alternatives and additional opportunity for public feedback.
• Review and recommendation by the Recreation and Parks Commission.
• Consideration of the final Enterprise Park Master Plan by the City Council.
This sequence allows the broader public vision for Enterprise Park to be established before the City determines whether any proposed private development appropriately fits within that vision. It also provides the community several opportunities to provide input before any final decision is made by City Council.
ALTERNATIVES
• Provide direction to explore an alternative process for the proposed development.
FINANCIAL IMPACT
The proposed approach is intended to leverage developer funding to support the Enterprise Park Master Planning process. The developer would fund the third-party landscape architecture firm, and certain planning and technical work associated with the ENA. Any additional City costs or future financial commitments would be identified and presented as part of subsequent City Council actions.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
The workshop and staff request for direction on a proposed ENA, which in and of itself would merely establish a basis for future negotiations do not commit the City to any definite course of action, do not constitute a “project” as defined in California Environmental Quality Act Guidelines Section 15378 and therefore no further CEQA analysis is required at this stage. Consideration of any future ENA, entitlements, or transactional documents related to the proposed project will be subject to additional environmental review, once the specifics of the project are more fully known.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Provide direction on the development of an Exclusive Negotiation Agreement (ENA) process with Neptune Beach Surf Club at Enterprise Park.
Respectfully submitted,
Justin Long, Recreation and Parks Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director