File #: 2024-4117   
Type: Consent Calendar Item
Body: City Council
On agenda: 7/2/2024
Title: Recommendation to Approve Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney, as Real Property Negotiators for 390 West Oriskany Avenue (srmErnst Development Partners). (Base Reuse and Economic Development 29061822)
Attachments: 1. Correspondence - Updated 7/2

Title

 

Recommendation to Approve Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney, as Real Property Negotiators for 390 West Oriskany Avenue (srmErnst Development Partners).  (Base Reuse and Economic Development 29061822)

Body

 

To: Honorable Mayor and Members of the City Council

From:  Jennifer Ott, City Manager

EXECUTIVE SUMMARY

Staff is recommending that City Council designate Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney, as the real property negotiators for a potential sale of property located at 390 West Oriskany Avenue, which will allow them to meet with City Council in closed session to discuss price and terms related to sale of the premises in a manner compliant with all applicable laws and to represent the City of Alameda (City) in negotiations with a public or private party.

BACKGROUND

On April 22, 2019, the City Council directed staff and Cushman & Wakefield to market 23.9 acres of land in the “Enterprise District,” which is an area generally bounded by West Atlantic Avenue, Main Street, San Francisco Bay and Seaplane Lagoon. Cushman & Wakefield commenced marketing in May 2019, and in October 2019, received eight initial offers. After some clarification with the parties, four offers were presented and four declined to continue in the process. On October 9, 2019, Governor Newsom signed AB1486 (Ting), which strengthened the Surplus Land Act and imposed requirements on local government selling publicly owned land to first accommodate affordable housing. This legislation effectively halted the process to advance nonresidential development within the former Naval Air Station.  In 2022, Governor Newsom signed AB 2319 (Bonta), restoring the ability to develop some land in the former Naval Air Station with nonresidential uses, provided certain affordable housing and labor requirements were met. 

 

On June 1, 2024, the City hosted an Alameda Point open house to provide information about future development of the Enterprise District, reaffirming that the 23.9 acres initially offered in 2019 is still the appropriate place to commence development of the area, due to its efficient delivery of critical infrastructure. In 2024, srmErnst Development Partners (“srmErnst”) submitted a proposal to develop a subset of this property, located on a portion of the block between West Oriskany Avenue, Viking Street, West Ticonderoga Avenue and Skyhawk Street with a research and development use. This property is currently a vacant lot and is bounded by Building 410 to the west and Building 530 to the east. Both buildings are warehouses and Building 410 is currently temporarily occupied by Alameda Municipal Power for storage of equipment. Building 530 is currently vacant.

DISCUSSION

Under Government Code Section 54956.8, Title 5, Division 2, Part 1, Chapter 9, City Council must identify, in an open and public session, the real property negotiators for negotiation of the price and terms concerning real property, such as the Premises. Staff is recommending that City Council approve Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney as the real property negotiators for the sale of the premises, which will allow them to meet with City Council in closed session to discuss price and terms for this property in a manner compliant with all applicable laws and to represent the City in negotiations with a public or private party.

ALTERNATIVES

                     Approve Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney as real property negotiators for the Premises.

                     Identify other staff as negotiators.

                     Choose not to negotiate terms related to the sale with srmERNST for the premises, and thus do not identify negotiators.

 

FINANCIAL IMPACT

There is no financial impact from the approval of real property negotiators.

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

This action is consistent with the Alameda Municipal Code.  This action is subject to the Levine Act and relates to Strategic Priority to Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources. Specifically Project TIE25 to Implement the City’s Alameda Point Disposition Strategy.

ENVIRONMENTAL REVIEW

This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.

CLIMATE IMPACTS

There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.

RECOMMENDATION

Approve Jennifer Ott, City Manager, Abigail Thorne-Lyman, Base Reuse and Economic Development Director, Alesia Strauch, Base Reuse Manager, John McManus, Managing Director, Cushman & Wakefield, and Len Aslanian, Assistant City Attorney as the real property negotiators for the sale of the premises located at 390 West Oriskany Avenue. 

Respectfully submitted,

Abby Thorne- Lyman, Base Reuse and Economic Development Director

 

Financial Impact section reviewed,

Margaret O’Brien, Finance Director