Title
Introduction 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
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
Staff recommends that City Council authorize the City Manager to execute a Third Amendment (Exhibit 1) to the Lease with Faction Brewing Company, LLC., a California limited liability company (Faction) for a portion of 2501 Monarch Street, Suite 200 (Building 22) at Alameda Point. The amendment would lengthen the initial term of the current lease to thirteen (13) years, replace the two 10-year options to renew with one 2-year option, and establish a revised repayment schedule for unpaid rent. Faction operates a brewery and tasting room hosting food trucks and events on the property and the recommended modifications to the lease are intended to support the continued success of this long-standing Alameda business.
BACKGROUND
Faction is known as Alameda Point's first local brewery and consistently draws visitors to Spirit's Alley seven days per week. Beginning in 2012, the City of Alameda (City) entered an initial short-term Lease with Faction at Building 22 and on April 17, 2018, the City executed a new longer-term ten (10) year lease with Faction (Current Lease) (Exhibit 2), which included two ten-year extension options for a total possible full duration of 30 years. Since its opening, Faction has established itself as a well-known Bay Area brewery drawing visitors from all over the region to enjoy their tasting room, attend the multitude of engaging events hosted on-site, and relish views of the San Francisco skyline from the expansive patio.
The COVID-19 pandemic and resulting Shelter in Place orders caused major economic impa...
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