Title
Summary Title: Approval of Project Agreements with Radium Presents for the Radium Performing Arts Center Consisting of the Development of an Approximately 53,000 Square Foot Performing Arts Center and Approximately 1-Acre Plaza on 1.87-Acres of City-Owned Land Referred to as Site A Blocks 12 and 13 at Alameda Point, Including Adoption of a Site-Specific Surplus Land Exemption
Public Hearing to Consider Adoption of Resolution Declaring 1.87 Acres of City-Owned Land Between Building 77 and the Seaplane Lagoon Promenade to be Exempt Surplus Land under the Surplus Land Act; and
Introduction of Ordinance Approving a Lease Option for Three Years with Three One-Year Extensions in Furtherance of a Sixty-Six Year Ground Lease with Purchase Option with Radium Presents for Approximately 1.87 Acres of Land Located at Alameda Point, and Authorizing the City Manager to Execute a Purchase and Sale Agreement Consistent with the Purchase Option. [Requires four affirmative votes]
The Project is subject to the streamlining provision of Public Resources Code Sections 21166 and 21083.3 and Sections 15162 and 15183 of the California Environmental Quality Act Guidelines. Accordingly, a CEQA Checklist has been prepared, and no further environmental review is required. (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The Radium Performing Arts Center (Project) is a plan to construct a 53,000 square foot, state-of-the-art Performing Arts Center on the former taxiway between Building 77 and the Seaplane Lagoon Promenade Park (referred to as Blocks 12 and 13 in the Site A Development Plan) at Alameda Point. The Project also includes a 1-acre public plaza fronting Pan Am Way, a new pedestrian-oriented roadway extending west from Pan Am Way and improvements to the existing Seaplane Lagoon Promenade Park to more seamlessly transition the existing park into the new public plaza. Under the included agreements, Radium Presents (Developer), a non-profit arts organization, will fully fund and construct the facility and other project improvements as well as operate the facility as a non-profit organization.
The recommended resolutions and ordinance make it possible for the City of Alameda (City) and Radium Presents to move forward with funding, construction, and operation of the proposed Project. The proposed Project is located on 1.87 acres of City-owned land located on Pan Am Way between the Seaplane Waterfront Park and Building 77 at Alameda Point.
The Historic Advisory Board (HAB) unanimously approved a Certificate of Approval (Exhibit 1) for the Project on March 5, 2026, and the Planning Board unanimously approved an amendment to the Site A Development Plan for Blocks 12 and 13 (Exhibit 2) on March 23, 2026. Staff is now recommending that City Council hold a public hearing and take the necessary actions to facilitate the construction and operation of the Project. The recommended actions include:
• Approving a site-specific resolution declaring the 1.87-acres of City-owned land located on Pan Am Way between the Seaplane Lagoon Promenade and Building 77 at Alameda Point as exempt surplus land under the California Surplus Land Act;
• Approving a first reading of an ordinance authorizing the Interim City Manager to execute a Lease Option with attached Ground Lease with Purchase Option, and a Purchase and Sale Agreement (PSA) (collectively, the “Project Agreements”).
The real estate agreements are successive in nature: the Developer would secure an exclusive option to lease the property upon execution by both parties, followed by a ground lease once 100% of Project funds have been raised, and the option to purchase the land after ten years of successful operation.
BACKGROUND
The 68-acre Site A Development Plan was originally approved in 2015 and first amended in 2022. Blocks 12 & 13 of the Site A development, as designated in the Development Plan, are located between the Seaplane Lagoon Promenade and Building 77, and are designated for commercial, entertainment, and performing arts space, including an approximately 53,000 square foot theater.
After seeking proposals for the development of a performing arts center, on December 19, 2023, City Council unanimously approved an Exclusive Negotiating Agreement (ENA) with Little Opera House, Inc. (now Radium Presents, a.k.a. Developer) on Site A Blocks 12 and 13 located on Pan Am Way between Seaplane Lagoon Promenade and Building 77 at Alameda Point within the Waterfront and Town Center Precise Plan area, the Site A Development Plan area, and the NAS Alameda Historic District to construct and operate a performing arts center.
The Developer and City’s vision is to create a world class, performing arts center that is uniquely situated on the San Francisco Bay, attracting regional audience as well as capable of drawing national and international performers. The Project consists of the construction of an approximately 53,000 square foot facility that includes an approximately 600-seat main theater, an approximately 210-seat studio theater, a rehearsal room, offices and shared spaces, an event space, and ticketing and concession spaces, an approximately 40,000 square foot outdoor public plaza, and a new pedestrian-oriented roadway between the Project site and Building 77.
The ENA was extended twice in 2024 and twice again in 2025 to provide necessary additional time to complete negotiations. The current ENA expires on April 30, 2026.
Community Engagement and Feedback from City Boards. The ENA specifies opportunities for the public and others to inform the negotiations, including meetings with the Historical Advisory Board (HAB) and Planning Board (PB). A summary of engagement with City boards and commissions as well as key feedback is provided below:
• The HAB held public workshops on June 6, 2024, and November 7, 2024.
• The PB held public workshops on June 10, 2024, and December 12, 2024.
• HAB and PB appointed board members to a joint subcommittee focused specifically on the proposed Project. The joint HAB/PB subcommittee met three times between June and September of 2024.
Staff received key feedback from the HB, PB and joint HAB/PB subcommittee on proximate parking needs, circulation, view corridors, and plaza design.
A summary of community engagement efforts led by City staff and the Developer is provided below:
• On June 1, 2024, City Council and City staff welcomed members of the public and representatives from various City boards and commissions to a family-friendly Alameda Point Open House. The event included five (5) stations at strategic locations including that of the proposed performing arts center. The free event attracted over 275 visitors, was staffed by over 35 volunteers, and included many local businesses and non-profit organizations as special guest exhibitors. Feedback from the Open House event was focused on prioritizing community benefits that could be generated from the Project, which has informed the Project Agreements.
• Throughout 2024, the Developer conducted extensive public outreach to raise awareness about the proposed Project and gather feedback about the Project’s scope, programming, and design. The Developer conducted targeted community presentations at:
o The City of Alameda Open House (in parallel with City staff’s efforts (June 2024))
o Mastick Senior Center (July 2024)
o Rotary Club (July 2024)
o Naval Air Museum (November 2024).
• The Developer expanded its outreach to the broader East Bay artistic community, conducting a facility needs assessment that garnered 37 responses. This assessment reinforced the demand for key amenities, including a 600-seat performance venue, black box theater, and outdoor performance space.
Entitlements. In parallel to negotiations on the Project Agreements between the City and the Developer, the Developer pursued Project approvals from the HAB and PB.
• On March 5, 2026, the HAB unanimously approved a Certificate of Approval.
• On March 23, 2026, the Planning Board unanimously approved an amendment to the Site A Development Plan Amendment (to the Site A Development Plan), providing an updated, detailed block-level plan for Blocks 12 and 13.
DISCUSSION
The Radium Development Plan Amendment, approved by the Planning Board on March 23, 2026, refines the Site A Development Plan for Blocks 12 and 13 with more targeted, project-specific detail, and it is consistent with the City Council-approved Citywide General Plan, Alameda Point Waterfront Town Center Precise Plan, and the Alameda Point Zoning Ordinance policies, standards and development densities. The proposed plan includes a 53,000 square foot performing arts facility, an approximately 40,000 square foot outdoor public plaza, and a new pedestrian-oriented roadway between the Project site and Building 77.
The Development Plan Amendment is an entitlement from the Planning Board that establishes the general site plan and preliminary design details that will be further refined at the Design Review stage; it is the first planning approval and an intermediate step for implementing broader City Council-adopted plans and goals into a defined project. Because it is a planning entitlement, and given its consistency with City Council-adopted plans, generally no additional approval action is required by City Council on the Development Plan, but City Council action is required on the following resolutions and ordinance for the Project to move forward:
I. Surplus Land Resolution
Prior to taking any action to dispose of (i.e., sell or convey) land owned by the City, the Surplus Land Act [California Government Code Section 54221(b)(1)] requires the City to declare the land "surplus land" or “exempt surplus land" with written findings.
Staff recently brought forward a series of actions declaring numerous parcels at Alameda Point to be exempt surplus land, with the intention of further refining exempted properties with site-specific resolutions as relevant lease and sale transactions proceed. The recommended draft resolution declares that the 1.87-acre property on the former taxiway between Building 77 and the Seaplane Lagoon Promenade Park is “exempt surplus land” under the Surplus Land Act based on findings prescribed by Government Code Section 54221(f)(1)(J).
II. Project Agreements Ordinance
The Project Agreements under consideration by the City Council include a Lease Option Agreement with Ground Lease Agreement with Purchase Option and a Purchase and Sale Agreement (PSA). The Lease Option with attached Ground Lease with Purchase Option is included as Exhibit 3. The PSA is included as Exhibit E of the Ground Lease.
The Project Agreements are structured so that if Developer meets its obligations under each agreement, Developer has the right to enter into and/or exercise the subsequent agreement. For instance, if Developer fulfills its obligations under the Lease Option, Developer has the right to enter into the Ground Lease. And once Developer meets its obligations under the Ground Lease, it has the right to exercise the Purchase Option and execute the PSA. This Ordinance is therefore City Council’s final approval for the Project (the Project will still require other approvals including a public access and use easement, Design Review and necessary permits).
The table below provides a high-level summary of some of the key elements of the Project Agreements including the conditions necessary for Developer to enter into and/or remain in good standing the subsequent agreement. More detail is presented in the sections below.
|
Agreement |
Lease Option à |
Ground Lease à |
Purchase Option |
|
Description |
Binding agreement with the Developer wherein if the Developer adheres to all obligations, they have the exclusive option of exercising a ground lease |
Provides site control to Developer to construct and operate project |
Following fulfillment of obligations, Developer has right to purchase site using predetermined fair market value formula |
|
Term/Timing |
Three (3) years with three 1-year extensions (extensions tied to fundraising progress milestones) |
66 years |
Can be exercised following 10 years of “sustainable operations” (Council can consider early purchase) |
|
Conditions to Move to Next Step |
100% of Project funds committed |
Payment and performance bond (100%) of the Project construction cost |
City Right of First Refusal (ROFR) to buy back |
|
|
Project entitled |
Adherence to Sustainable Operations Plan |
Restrictive Covenant (non-profit theater benefiting community) |
|
|
Negotiation of Project Labor Agreement |
Construction of new pedestrian-oriented roadway and plaza |
|
Lease Option: The lease option would be effective upon City Council approval and City Manager execution of the agreement. The lease option structure provides a binding agreement with the Developer wherein if the Developer adheres to all obligations of the lease option, they have the exclusive option of exercising a ground lease and subsequently a purchase option for the Property.
Term. Three (3) years with three (3) one-year extensions. Extensions are contingent upon the Developer demonstrating the following fundraising milestones have been met:
• One-year extension if at least thirty-five (35%) of required funds raised
• One-year extension if at least thirty-five (60%) of required funds raised
• One-year extension if at least thirty-five (85%) of required funds raised
Sustainable Operations Plan (Exhibit C of Lease Option). The Sustainable Operations Plan sets out key operational benchmarks for the operation of the performing arts facility at a minimum standard acceptable to the City during the term of the Lease. Prior to entering into the Ground Lease, the Developer will update the Sustainable Operations Plan to include sources and uses of funds necessary to support ongoing operations (e.g. approach to fundraising, establishment of an operating endowment, etc.).
Developer Obligations. To execute the Ground Lease, the Developer must meet several key conditions including, but not limited to, the following:
• Project entitlements have been secured;
• Evidence of sufficient funds to complete the Project;
• Developer is responsible for complying with the City’s Project Stabilization Agreement Ordinance and negotiating a Project Labor Agreement for the Project consistent with the requirements of the Project Stabilization Agreement;
• Submittal of complete building permit application; and
Ground Lease: Once the Developer has satisfied all necessary conditions, the City and the Developer will enter into a long-term Ground Lease during which the Project will be constructed and operated.
Term. Sixty-six (66) years.
Rent. $1 per year.
Developer Obligations. To remain in good standing under the Ground Lease, the Developer must meet several obligations. Key elements are summarized below:
• Approval from the City for Project Building Permits within first year of the Ground Lease;
• Secure a payment and performance bond for 100% of hard construction costs;
• Demonstrate additional available funds totaling 20% of the total hard construction costs;
• Construction must commence within first 15 months of the Ground Lease;
• Off-site work, including plaza and pedestrian-oriented roadway, to be completed prior to receiving Certificate of Occupancy;
• Adherence to Sustainable Operations Plan; and
• Execute a public access and use easement for plaza in favor of City and the general public (Exhibit Q of the Ground Lease).
City Obligations. City commits to completing off-site improvements prior to Developer receiving Certificate of Occupancy. Off-site improvements include a temporary 160-stall parking lot west of Project site and a new north-south roadway connecting West Tower Avenue to a new pedestrian-oriented roadway. City also commits to maintaining a minimum of 160 non-exclusive public parking spaces within ¼ mile of the Project.
Covenant, Conditions and Restrictions (CC&Rs). Effective with execution of the Ground Lease, but established in perpetuity (will run with the land):
• The 1.87-acre site is to remain accessible to, and to the benefit of, the community.
• The operator of facility must be a non-profit entity.
• The City maintains the right of first refusal should the Developer wish to sell the property.
Material Defaults. The Ground Lease includes four materials defaults:
• Loss of non-profit status
• Bankruptcy
• If operations and public programming cease for ninety (90) days
• A failure to maintain the Project
Plaza Public Access and Use Easement. Prior to Developer’s receipt of a temporary or final certificate of occupancy for the Project, Developer is required to execute in favor of City and the general public a public access and use easement (form of easement included as Exhibit Q of the Ground Lease) to allow for access to and use of the new plaza constructed by the Developer adjacent to Pan Am Way. Approval of the easement will require future approval by City Council resolution.
Purchase Option and PSA. Following construction of the Project, and operation of the facility in adherence with the Sustainable Operations Plan for a minimum of ten (10) years, the Developer will have the option to purchase the land from the City. Once Developer’s requirements have been met and the Developer has exercised its purchase option, the City Manager will be authorized to execute the PSA (Exhibit E of Ground Lease).
If circumstances change dramatically, Developer may request that staff and City Council consider selling the property before the minimum 10 years. However, such an early sale would be in the sole discretion of the City Council.
Purchase Price. The purchase price will be determined by a fair market value (FMV) formula (Exhibit N of the Ground Lease) at the time of the purchase. The FMV will consider the value of the property at the time of the purchase, taking into account the CC&Rs and Developer obligations under the Sustainable Operations Plan, less the value of all Project improvements funded by Developer.
As structured, so long as the Developer meets the stated conditions and no terms change, no additional action would be required by the City Council to advance to the next step.
III. Additional Community Benefits
In addition to Developer funding, constructing, and operating a state-of-the-art performing arts center at Alameda Point, additional community benefits have been negotiated between the City and Developer. These additional community benefits are included in the Sustainable Operations Plan as an exhibit of the Lease Option Agreement and Ground Lease. The City and Developer have, where applicable, set thresholds for these benefits that acknowledge the City's contributions to, and goals for, the Project, while accounting for the economic and financial sustainability of the Developer. Below is a summary of the key additional community benefits:
a. Public Plaza. Developer will construct and maintain new 1-acre public plaza adjacent to Pan Am Way;
b. New pedestrian-oriented roadway. Developer will construct a new pedestrian-oriented roadway between the Project site and Building 77;
c. Minimum Activation. Developer will ensure that the Project, including the plaza, is utilized for a minimum 200 uses per year, where uses include any use of a Project space for a rehearsal, class, performance, demonstration, meeting, reception, ticketed and non-ticketed event, community rental or private rental or other similar use. In addition to the 200 uses per year, the Plaza shall be utilized a minimum of five (5) uses per year;
d. Public Access. Developer will provide access for the community to the public portions of the Project, including the plaza, second floor balcony, and rooftop terrace during regular operating hours to the extent such portions of the Project are not in use for events or performances;
e. Employment Opportunities for Formerly Unhoused. Developer will strive for 15% of Project jobs to be made available to formerly unhoused individuals, in collaboration with Alameda Point Collaborative or related collaborative partners, in alignment with the Standards of Reasonableness for Homeless Uses at Alameda Point (1999);
f. Ticket Discounts. Developer will offer senior, student and active military discounts of 10% or more to Alameda residents on all Developer-presented performances;
g. Admission Vouchers. Developer will provide complimentary admission vouchers to non-profit organizations serving Alameda Point;
h. City Utilization of Theater and Plaza. Subject to availability, City may utilize portions of the Project (including but not limited to main theater, studio theater, and plaza) up to 12 times per year at a cost equal to Developer’s actual cost; and
i. Discounted Non-profit Rental Rate. Developer will provide special discounted rental rates of 20% or more from the highest published rental rate for all areas of the Project for City of Alameda-based 501c3 not-for-profit organizations.
IV. Project Labor Agreement
Consistent with the City’s Project Stabilization Resolution 15740 and the California Surplus Land Act, prior to entering into the Ground Lease, Developer shall have negotiated a Project Stabilization Agreement consistent with the City’s Project Stabilization Agreement Ordinance and to the extent required by law, Developer shall agree to pay prevailing wages for all Improvements to be constructed on the Project site, as well as any improvements being constructed off site in conjunction with the Project.
ALTERNATIVES
• Approve the above-described resolutions and ordinance for the Radium project as recommended by staff.
• Approve the above-described resolutions and ordinance with modifications.
• Do not approve the above-described resolutions and ordinance with direction to staff to renegotiate certain specified terms based on specific City Council concerns and direction. In this scenario, staff would recommend amending the ENA to provide additional time for such negotiation as the current ENA expires on April 30, 2026.
• Choose not to approve the above-described resolutions and ordinance and direct the Interim City Manager to terminate negotiations with Radium Presents.
FINANCIAL IMPACT
There is no direct fiscal impact from the recommended resolutions and ordinance to the General Fund. City off-site improvements (temporary parking lot and north-south roadway) required in the Project Agreements will be funded out of the Alameda Point/Base Reuse Fund (Fund 290). The north-south roadway will remain temporary until Seaplane North, a new roadway envisioned in the Master Infrastructure Plan (MIP), is completed, at which time the new north-south roadway will be made permanent. The permanent roadway improvements are estimated to cost approximately $4.5 million in 2025 dollars.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The recommended ordinances and resolutions are consistent with the General Plan, Waterfront Town Center Specific Plan, and Site A Development Plan.
Project Stabilization Agreement Resolution 15740 (2021)
Citywide Strategic Plan TIE 25: Implement the City’s Alameda Point Disposition Strategy
ENVIRONMENTAL REVIEW
The Project is subject to the California Environmental Quality Act (CEQA) streamlining provisions of Public Resources Code Sections 21166 and 21083.3, and Sections 15162 and 15183 of the CEQA Guidelines, as documented in Exhibit 5 - CEQA Checklist, and no further environmental review is required. The CEQA Checklist was already reviewed and approved by HAB on March 5, 2026, in its approval of a Certificate of Approval to determine the consistency of the Project with relevant historic preservation and design guidelines, and as part of the implementation of the applicable CEQA mitigation measures discussed below. Planning Board also reviewed and approved the CEQA Checklist on March 23, 2026.
The Project is within the project area of the Alameda Point Final EIR (FEIR), including its Statement of Overriding Considerations (SOC) and Mitigation, Monitoring, and Reporting Program (MMRP), which were certified and adopted by City Council in compliance with CEQA on February 4, 2014, by Resolution No. 14891. Collectively, the FEIR and SOC evaluated the environmental impacts of redevelopment and reuse of Alameda Point, including infill development on the Seaplane Lagoon Taxiway, and concluded that certain impacts would be significant, and further that some of those significant impacts could be mitigated, while other significant impacts would be unavoidable even with mitigation. The SOC determined, however, that certain unavoidable impacts were acceptable in light of the Alameda Point Project’s economic redevelopment goals, provided that mitigation be implemented to the greatest extent feasible.
Of particular importance, the FEIR and SOC concluded that, even with implementation of the relevant Mitigation Measures 4.D-1a through 4.D-1c (related to historic resources), demolition and/or substantial alteration of NAS Alameda Historic District contributors, and new development within the Historic District, could result in significant and unavoidable impacts, but that such impacts were acceptable if those mitigation measures were applied to the greatest extent feasible. For new development, mitigation is generally achieved through HAB review of a project’s consistency with City Council-adopted NAS Alameda Historic District guidelines and related standards. Here, HAB issued a Certificate of Approval on March 5, 2026, determining the Project was consistent with those guidelines and standards, and thereby the Project also satisfied the relevant historic mitigation measures.
The Project’s CEQA Checklist (Exhibit 5) provides an issue-by-issue analysis of the other FEIR topics and MMRP compliance. As mentioned above, the checklist was already reviewed and approved by HAB and Planning Board on March 5, 2026, and March 23, 2026, respectively.
CLIMATE IMPACT
The Project aligns with the City's sustainability goals and Climate Action and Resiliency Plan by as it will generate local economic activity, provide equitable access to cultural life, and contribute to a healthier built environment as it will comply with all City or California applicable green building codes and sustainable building requirements. Additionally, the Project will implement stormwater management practices in line with the Alameda County Clean Water Program and will incorporate water and energy-efficient designs.
RECOMMENDATION
Public Hearing to Consider Adoption of Site-Specific Resolution Declaring 1.87 Acres of City-Owned Land Between Building 77 and the Seaplane Lagoon Promenade to Be Exempt Surplus Land under the Surplus Land Act;
Introduction of an Ordinance Approving a Lease Option Agreement in Furtherance of a Ground Lease with Purchase Option, and Authorizing the Interim City Manager to Execute a Purchase and Sale Agreement Consistent with the Purchase Option. [Requires four affirmative votes].Respectfully submitted,
Abby Thorne-Lyman, Base Reuse and Economic Development Director
By,
Walker Toma, Community Development Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Certificate of Approval
2. Radium Development Plan
3. Lease Option with Attached Ground Lease with Purchase Option
4. CEQA Checklist