Title
Introduction of Ordinance Approving a Second Amendment to a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of the Second Amendment to a Lease with Advanced Roofing Services, Inc. for Twenty-Four Months at 1450 Viking Street, Building 612, at Alameda Point. [Requires Four Affirmative Votes] (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
This action will introduce an ordinance extending the lease term for Advanced Roofing Services, Inc. (Advanced Roofing) for an additional 24 months for a monthly lease amount of $3,200 - $3,295 for a 4,000 square foot building and parking area in the Enterprise District at Alameda Point (1450 Viking Street).
BACKGROUND
Advanced Roofing provides re-roofing, water-proofing, repair/maintenance and gutter services. In 2014, Advanced Roofing moved into Building 612, which is located at Alameda Point and is shown on the attached map (Exhibit 1). The term of the current lease expires on May 31, 2019, and this lease amendment is intended to retain an existing tenant. This second amendment extends the term of the current lease by twenty-four (24) months. While Building 612 is in the Enterprise District, the two-year term and building location is not expected to be a hindrance to future development opportunities. The second amendment, first amendment, and original lease are attached as Exhibits 2 - 4.
DISCUSSION
The premises are currently being used as a warehouse and administrative office for a roofing services and materials company. The property consists of approximately 4,000 square feet of rentable space with adjacent parking in front.
Under this second amendment to the lease, the rent will be $3,200 per month for year one and $3,295 per month for year two. The second amendment retains the original lease’s standard insurance, indemnity, assignment and termination clauses, which the City of Alameda requires in all its leases.
The following summarizes the major business terms of the second amendment to the lease:
|
Terms |
Building 612 |
|
Square Footage |
4,000 |
|
Uses |
Warehouse and administrative office use |
|
Length of Term |
An additional 24 months (through May 31, 2021) |
|
Security Deposit |
Additional $795 (total deposit amount $3,295) |
|
Monthly Base Rent |
$3,200.00 - $3,295.00 |
|
Months 1-12 |
$3,200.00 |
|
Months 13-24 |
$3,295.00 |
FINANCIAL IMPACT
The monies from the lease will be deposited into the Base Reuse Lease Revenue Fund (Fund 858) and are limited to uses permitted under the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Introduction of an ordinance approving a second amendment to lease with Advanced Roofing Services, Inc. at Alameda Point is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines section 15301(c) - Existing Facilities.
RECOMMENDATION
Introduce an Ordinance Approving a Second Amendment to a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a Second Amendment to the Lease Agreement with Advanced Roofing Services, Inc. a California Corporation, for Building 612 Located at 1450 Viking Street at Alameda Point.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Premises
2. Second Amendment
3. First Amendment
4. Original Lease