Title
Receive Final Report Presentation and Recommendations from the City of Alameda's America's Cup Ad Hoc Committee. (Community Development)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Receive Final Report Presentation and Recommendations from the City of Alameda's America's Cup Ad Hoc Committee
BACKGROUND
At its June 21, 2011 meeting, the Alameda City Council formally supported a new committee to help identify ways the City could participate in the 34th America's Cup events (AC34), which were held on the San Francisco Bay this past summer. The 12-member America's Cup Ad Hoc Committee (Committee) includes representatives from the local maritime and business community and has held regularly scheduled and publically noticed meetings for the past two years.
With the AC34 now over, the Committee approved, at its October 9 meeting, a final report summarizing its activities and recommendations, for the City Council's consideration (Exhibit 1).
DISCUSSION
The Committee was tasked to:
• capitalize on the economic development and tourism opportunities surrounding the America's Cup;
• strengthen Alameda's reputation as a vibrant maritime community; and
• improve Alameda's appeal as a tourist destination.
Through the Committee's leadership, the City of Alameda was at the forefront in America Cup's activities among the many cities outside of San Francisco that worked to establish a presence in the event, such as Berkeley, Oakland, Richmond, and Emeryville.
The Committee's major accomplishment was attracting two of the four teams competing in the regatta to locate their team operations at Alameda Point, bringing international recognition and lease revenue to the City. The Artemis Racing Team from Sweden has a 19-month lease for the use of a former hangar at Alameda Point. The Italian Luna Rossa Challenge has occupied an adjacent building for seven months.
The presence of the Artemis Team in particular has had a ripple effect in the local economy. The Artemis Team has contracted with many Alameda businesses for local hotel accommodations, gym facilities, daily catering, custodial services, and marine and building supplies. Approximately 70 team members and their families moved to Alameda, renting homes and apartments and using local businesses for basic daily goods and services.
The Committee succeeded in raising local and international awareness of Alameda as a working maritime community. The attraction of the Swedish and Italian teams highlighted that Alameda has large industrial warehouse space immediately adjacent to the waterfront, which is a rare commodity in the Bay Area. News stories about these teams routinely mentioned Alameda with images of their huge facilities at Alameda Point. In addition, the Committee organized a special event featuring the Artemis CEO at the Alameda Theatre, which was attended by over 700 Alameda residents. This was the largest public, AC34-related event in the Bay Area, outside of the concert series organized by the America's Cup Event Authority. Committee members have made community presentations, created the website AlamedaWaterfront.com, and started the "Maritime Report" column for the local news site The Alamedan. The Committee's activities also spurred some members to create the Alameda Community Sailing Center, a non-profit youth and family sailing organization.
The Committee's recommendations for the Council's consideration include:
1. Keep the current Committee intact until a decision is made about the location of the next America's Cup (AC35), which is expected within the next six months. The Committee may meet quarterly in preparation of a final decision;
2. Continue the Committee if San Francisco is selected as the site for AC35. A second America's Cup in the Bay Area may have greater regional economic benefits. There would likely be more teams competing with a decision to use less expensive boats;*
3. Encourage the City to send a congratulations letter to the winning Oracle Team USA, offering to be a partner by providing a working waterfront with industrial capacity to support racing teams. The Committee also suggests sending letters to Luna Rossa, Artemis, and Emirates Team New Zealand;
4. Preserve and promote Seaplane Lagoon for maritime and sailing oriented uses. Alameda Point's large industrial space close to the water attracted the Swedish and Italian teams and supports important maritime companies like Power Engineering;
5. Consider supporting or hosting other major sailing events. Alameda may be an appropriate site to support prestigious around-the-world races that periodically start in the Bay Area; and
6. Support water access, community-based maritime events and uses, such as the Alameda Community Sailing Center, to enable people to get in or on the water.
FINANCIAL IMPACT
The total lease revenue at Alameda Point from the Artemis Racing Team and the Luna Rossa Challenge is approximately $556,215.
The Community Development Department spent $3,000 for promotional materials and advertisements related to the America's Cup. This was drawn from the Department's $30,000 budget in Commercial Revitalization Fund 227 for collateral materials to support business development activities.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Economic Development Strategic Plan (revised in 2008):
· Strategy #1 Create Industrial and Office Jobs, contains the initiative to "support the development of maritime industries in Alameda."
· Strategy # 3 Business Travel Market and Limited Impact Tourist Attractions, contains the initiative to "market Alameda as a visitor destination."
ENVIRONMENTAL REVIEW
This action is not a project under the California Environmental Quality Act (CEQA) Guidelines, Section 15378. Consequently, no environmental review is required.
RECOMMENDATION
Receive the Final Report presentation and recommendations from the City of Alameda's America's Cup Ad Hoc Committee.
Respectfully submitted,
Debbie Potter, Interim Community Development Director
By,
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibit:
1. America's Cup Ad Hoc Committee's Final Report PowerPoint Presentation
* Footnote: The 72-catamarans were very expensive, advanced technology crafts that required forming a large sailing crew and support team. This created a major barrier of entry, with five teams deciding not to compete.