Title
Introduction of an Ordinance Approving the Lease Agreement for Six Years with Five Three-Year Options with Google Inc. in Building 11 Located at 1050 W. Tower Avenue and Building 19 Located at 2175 Monarch Street at Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
BACKGROUND
In 2006, the City of Alameda entered into a lease agreement for Building 19 with Makani Power, a "start-up" company researching and developing new wind power technologies, including an airborne wind turbine. The Makani Airborne Wind Turbine is a tethered wing that generates power by flying in large circles where the wind is stronger and more consistent. It eliminates 90% of the material used in conventional wind turbines, and can access winds both at higher altitudes and above deep waters offshore - resources that are currently untapped. Their goal is the utility-scale deployment of airborne turbines in offshore wind farms. In 2013, Makani Power was acquired by Google. As a result, Google would like to continue to lease not only Building 19 and an adjacent shed (i.e., air control tower) from the City, but also Building 11 (i.e., western most Seaplane Hangar) in order to expand Makani Power's research and development space.
DISCUSSION
The proposed lease agreement with Google replaces the existing lease with Building 19 and adds Building 11 to the agreement. The following summarizes the major business terms of the lease agreement:
Terms
Building 19
Building 11
Square Footage
16,888
110,561
Uses
General Office, Engineering, R&D and Manufacturing
Engineering, R&D, Manufacturing, General Office
Length of Term
6 Years
6 Years
Extension Options
Five Options for Periods of Three Years Each
Five Options for Periods of Three Years Each
Monthly Base Rent
$55,205-$62,134
Abatement of Rent
First 12 Months of Term
Right of First Offer
For Adjacent Buildings 400/400A and Building 12
Right of First Nego...
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