Title
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Negotiate and Execute Documents Necessary to Implement the Terms of a Lease with Bay Ship and Yacht Company for Sixty Months in Building 292 Located at 1450 Ferry Point at Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Introduce an Ordinance Approving a Lease and Authorizing the City Manager to Negotiate and Execute Documents Necessary to Implement the Terms of a Lease with Bay Ship and Yacht Company for Sixty Months in Building 292 Located at 1450 Ferry Point at Alameda Point
BACKGROUND
Bay Ship & Yacht Company (Bay Ship) is a full service ship repair company headquartered along the estuary in Alameda. Bay Ship has captured a significant share of the San Francisco Bay commercial dry-docking business, with the Alameda shipyard emerging as a state-of-the-art facility. Bay Ship completed a $10 million expansion project, which included reconstructing the shoreline, removing buildings, and locating a "ship elevator," known as a syncrolift, facing the estuary that can be used to lift and transfer up to five large ferry vessels at a time to a new shoreline vessel repair area. Bay Ship currently employs more than 250 skilled workers in Alameda. In addition to their facilities on the estuary, Bay Ship is proposing to lease Building 292 at Alameda Point, which will provide them with additional space to continue and expand their services.
DISCUSSION
The 1450 Ferry Point address, also identified as Building 292, is approximately two thousand seven hundred (2,700) square feet. The proposed lease with Bay Ship is for sixty months. As outlined in the lease, the sole purpose for which the premises may be used by the tenant is for general office, shop and storage of parts and equipment.
The base rent for the proposed lease term is:
Months |
Monthly Base Rent |
1 - 12 |
$1,815.00 |
13 - 24 |
$1,869.45 |
25 - 36 |
$1,925.53 |
37 - 48 |
$1,983.30 |
49 - 60 |
$2,042.80 |
In addition to base rent, Bay Ship will pay its share of common area maintenance costs, all costs for services, utilities and taxes for the Premises, and comply with lease requirements for insurance.
FINANCIAL IMPACT
The funds for this lease will be deposited in the Base Reuse Fund 858 and are subject to the restrictions included in the Economic Development Conveyance Memorandum of Agreement between the United States Government and the City of Alameda. There are no direct impacts on the General Fund.
ENVIRONMENTAL REVIEW
This section is exempt from the California Environmental Quality ("CEQA") pursuant to CEQA Guideline Section 15301 (Existing Facilities).
RECOMMENDATION
Approve an ordinance authorizing the City Manager to negotiate and execute documents necessary to implement the terms of a lease with Bay Ship & Yacht Company for sixty months in Building 292 located at 1450 Ferry Point at Alameda Point.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer - Alameda Point
By,
Nanette Mocanu, Acting Assistant Community Development Director
Financial Impact section reviewed,
Juelle-Ann Boyer, Interim Finance Director
Exhibits:
1. Diagram of Leasehold Area
2. Lease