Title
Adoption of Resolution Authorizing the Interim City Manager to Execute the Second Amendment to Consent to Sublease 8,000 Rentable Square Feet of Building 167, Located 1500 Ferry Point, between Matson Navigation Company, Inc. a Hawaii Corporation, as Sublandlord, and Mary Susan Ubbelohde, dba as Loisos+Ubbelohde, as Subtenant. In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense Exemption). (Base Reuse and Economic Development 29061822, 2916822)
Body
To: Honorable Mayor and Members of the City Council
From: Adam Politzer, Interim City Manager
EXECUTIVE SUMMARY
Matson Navigation Company, Inc., a Hawaii Corporation, (Matson) leases and occupies Building 167, locate at 1500 Ferry Point Road (Building 167) in Alameda Point from the City of Alameda (City). Matson is requesting the City’s consent, as Landlord, to continue an existing sublease arrangement with their subtenant, Mary Susan Ubbelohde, dba Loisos+Ubbelohde (Loisos+Ubbelohde) for 8,000 rentable square feet within Matson’s leased premises. The Second Amendment to Consent to Sublease (Exhibit 1) approves the extension of the term of Loisos+Ubbelohde’s sublease to align with Matson’s master lease term through November 2030. The City provided consent for Matson’s original sublease with Loisos+Ubbelohde in 2020. Staff requests that City Council authorize the Interim City Manager to execute the Second Amendment to Consent to Sublease.
BACKGROUND
Matson has been an Alameda Point tenant since 2006. Matson’s 10-year lease for Building 167, which commenced on December 1, 2015 (the “Lease” or “Master Lease”), contained two five-year renewal options. Matson has exercised its first renewal option, and on September 18, 2025, the City and Matson entered into the First Amendment to the Lease which extended the term of the Lease through November 30, 2030.
Loisos+Ubbelohde is an Alameda-based architectural firm that relocated to Alameda Point from Alameda Marina. On March 5, 2020, the City agreed to Matson’s sublease of a portion of Building 167 to Loisos+Ubbelohde, for a five-year term by executing a Consent to Sublease. The sublease provides that Loisos+Ubbelohde can use a portion of the premises for uses consistent with Matson’s Master Lease and Permitted Use; including maritime restoration, professional office, laboratory, workshop, and storage. The sublease contained two five-year extension options that mirror Matson’s Master Lease. The March 26, 2025 First Amendment to Consent to Sublease provided the City’s consent to extend the sublease term through November 25, 2025. Matson now seeks consent from the City to retroactively extend the term of the sublease through November 30, 2030, the same date that Matson’s Master Lease, as amended, expires.
DISCUSSION
Matson’s lease allows for subleasing with landlord consent, and consent may not be unreasonably withheld. The extension of the termination date of the sublease to November 30, 2030, is consistent with the terms of the original sublease.
ALTERNATIVES
• Adopt the resolution authorizing the Interim City Manager to execute the Second Amendment to Consent to Sublease between Matson Navigation Company, Inc., and Mary Susan Ubbelohde, doing business as Loisos+Ubbelohde, for approximately 8,000 rentable square feet of Building 167.
• Do not adopt the resolution. In order to move forward with this alternative, the City would need to make findings for why consent is being reasonably withheld. Staff does not recommend this alternative.
FINANCIAL IMPACT
There is no financial impact associated with this item.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. The action is consistent with the City Strategic Plan Priority to invest in transportation, infrastructure, economic opportunities, and historic resources through the renting and leasing of City properties. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense Exemption).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution authorizing the Interim City Manager to execute the Second Amendment to Consent to Sublease 8,000 rentable square feet of Building 167, located 1500 Ferry Point, between Matson Navigation Company, Inc., a Hawaii Corporation, as sublandlord and Mary Susan Ubbelohde, dba as Loisos+Ubbelohde, as subtenant.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alexis Krieg, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Second Amendment to Consent to Sublease
2. First Amendment to Consent to Sublease
3. Consent to Sublease