Title
Introduction of Ordinance Authorizing the City Manager to Execute a Second Lease Amendment with Faction Brewing Company LLC for Building 22, Suite 200, Located at 2501 Monarch Street at Alameda Point, for a Three-Month Rent Deferral and Subsequent Twelve-Month Deferred Rent Repayment Schedule. [Requires 4 affirmative votes]
In accordance with California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Staff is recommending that City Council authorize the City Manager to execute a Second Amendment to the Lease with Faction Brewing Company, LLC., (Faction) for approximately 32,500 square feet of space of Building 22, located at 2501 Monarch Street, Suite 200, at Alameda Point, (Premises). Faction is currently operating a brewery and tasting room, and family- and pet-friendly patio with live music, food trucks, and events at the Premises. The term of the current lease (Lease), dated April 17, 2018, is 10 years, expiring April 30, 2028, and includes two ten-year extension options (Exhibit 1). The First Amendment to the Lease, dated December 15, 2020, provided deferral of Base Rent for a period of nine (9) months, with a three (3) year repayment schedule and rent credit, as described in Exhibit 2. The proposed Second Amendment to the Lease defers three (3) months of rent, beginning February 2024, with a twelve (12) month repayment schedule. The Second Amendment is attached as Exhibit 3.
BACKGROUND
On August 16, 2012, the City of Alameda (City) entered into an initial five (5) year and three (3) month Lease with Faction. On April 17, 2018, the City entered into a ten (10) year lease with Faction. The lease includes two ten-year extension options.
In 2020, the COVID-19 pandemic, and ...
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