Title
Final Passage of Ordinance Authorizing the City Manager to Execute a Third Lease Amendment with Faction Brewing Company, LLC, a California Limited Liability Company for Building 22, Suite 200, Located at 2501 Monarch Street at Alameda Point. [Requires 4 affirmative votes] (Base Reuse and Economic Development 29061822)
Body
The staff report for this ordinance was included when the ordinance was introduced and is available at the following link:
<https://alameda.legistar.com/LegislationDetail.aspx?ID=8185603&GUID=341579E0-8682-4F51-81AB-5A17F8B9EAE2&Options=&Search=&FullText=1>
This ordinance was not revised when it was introduced.
Full text of the ordinance:
CITY OF ALAMEDA ORDINANCE NO. _____
New Series
AUTHORIZING THE CITY MANAGER TO EXECUTE A THIRD LEASE AMENDMENT WITH FACTION BREWING COMPANY, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY FOR BUILDING 22, SUITE 200, LOCATED AT 2501 MONARCH STREET AT ALAMEDA POINT
WHEREAS, Faction Brewing Company, LLC is a brewery led by a team with extensive brewing experience throughout Northern California and produces a variety of beers which include Pale Ale, IPA, Red, Pilsner, and Stout; and
WHEREAS, Faction Brewing Company, LLC entered into a lease agreement with the City of Alameda to occupy Suite 200 of Building 22 in 2012 and has been open to the public since early 2013; and
WHEREAS, Building 22, Suite 200 consists of approximately 32,500 square feet of rentable square feet; and
WHEREAS, in 2020 the City Council approved a nine-month rent deferral program for eight businesses at Spirits Alley, including Faction Brewing Company, LLC, that was memorialized as the First Amendment to its lease, and Faction Brewing Company, LLC, made all of those rent deferral payments according to schedule or early; and
WHEREAS, Faction Brewing Company, LLC has experienced unusual economic hardships since 2023, and has sought an extended repayment plan for its rental obligations; and
WHEREAS, in 2024, City Council approved the Second Amendment to Faction Brewing Company, LLC’s lease, allowing Faction Brewing Company, LLC to defer rental payments; and
WHEREAS, when Faction Brewing Company, LLC was unable to fully repay its deferred rent under the deadline set in the Second Amendment, City Council directed staff to renegotiate the lease terms; and
WHEREAS; the Third Amendment to Faction Brewing Company, LLC’s lease with the City would extend the term of its repayment period, reduce its operating costs by shortening the full lease duration - thus reducing its possessory interest tax obligation - and memorialize a one-time credit to incentivize the successful installation of shade structures and building signage; and
WHEREAS; the Third Amendment to Faction Brewing Company, LLC’s lease would also insert Transportation Demand Management Fee language that is now standard in the City’s new lease template.
NOW, THEREFORE, the City Council of the City of Alameda does hereby ordain as follows:
Section 1. The City Manager of the City of Alameda is hereby authorized to execute on behalf of the City of Alameda, an amended lease agreement with Faction Brewing Company, LLC, to extend the initial lease term by three years; replace the existing two 10-year renewal options with one 2-year renewal option; memorialize Faction Brewing Company, LLC’s minimum monthly repayment obligation of $3,763, and conditionally credit Faction Brewing Company, LLC for $11.317 in unpaid base rent, subject to Faction Brewing Company, LLC’s compliance with obligations to improve signage and install shade structures, subject to such technical or clarifying revisions as are reasonably determined necessary by the City Manager and approved by the City Attorney, and the City Clerk is hereby authorized and directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council of the City of Alameda hereby declares that it would have passed this ordinance, and each section, subsections, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases are declared to be invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage.
________________________________
Presiding Officer of the City Council
Attest:
__________________________________
Lara Weisiger, City Clerk
City of Alameda
* * * * * *
I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by Council of the City of Alameda in regular meeting assembled on the 15th day of September, 2026, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 16th day of September, 2026.
______________________ Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
_____________________________
Len Aslanian, Acting City Attorney
City of Alameda