Title
Introduction of Ordinance Authorizing the City Manager to Execute Lease Amendments for Rent Relief Programs to Rock Wall Winery and St. George Spirits Through the Loan Conversion Assistance Program for Rent Relief in Response to the Covid-19 Pandemic. (Community Development 858)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Covid-19 pandemic continues to impact communities around the world, including Alameda. On March 17, 2020, the City Council adopted an urgency measure, consistent with Section 3-12 of the City Charter. The March 17 ordinance authorized certain actions until April 7, but was extended on April 21 until the date the State's declaration of emergency is rescinded, unless revoked sooner as determined appropriate by City Council. The City Council discussed a rent deferral and abatement policy at its April 21, 2020 meeting and asked staff to come back with more information and recommendations on a potential rent abatement program.
Early research into what other commercial landlords were doing revealed that rent abatement was not being offered, but as the crisis continued longer than anyone had anticipated, landlords are having to be more creative. One of the proposed programs staff identified in May and the City Council approved an alternative to abating past due rent, was a loan conversion assistance program for commercial tenants in City-owned properties who have been impacted by the COVID-19 pandemic. Through use of the loan conversion approach, the City of Alameda (City) may convert up to six months of past due rent into a loan payable over time. If the tenant succeeds in reaching negotiated milestones, all or a portion of the loan may be forgiven. The program is similar to what was offered by the federal government through their Paycheck Protection Program. Staff felt that the loan conversion approach offered the City flexibility and allowed for an individualized approach to be applied to each tenant b...
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