Title
Final Passage of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a Lease with Wrightspeed, Inc., a Deleware Corporation, for Seven Years with Two Additional Five-Year Options and an Opportunity to Purchase Building 41 Located at 650 West Tower Avenue at Alameda Point. (Base Reuse 819099)
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CITY OF ALAMEDA ORDINANCE NO. ______
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS OF A LEASE WITH WRIGHTSPEED, INC., A DELAWARE CORPORATION, FOR SEVEN YEARS WITH TWO ADDITIONAL FIVE-YEAR OPTIONS AND AN OPPORTUNITY TO PURCHASE BUILDING 41 LOCATED AT 650 WEST TOWER AVENUE AT ALAMEDA POINT
WHEREAS, Wrightspeed is an engineering company started by one of Tesla Motor's co-founders and hearquartered in Silicon Valley. Wrightspeed is a powertrain company and does not manufacture vehicles; and
WHEREAS, In addition to being a cutting-edge, clean technology company, Wrightspeed will be adding at least 150 new jobs to Alameda and will represent significant business-to-business sales tax revenue to the City over the next 7 years; and
WHEREAS, the proposed lease is for seven years with two five-year options to renew; and
WHEREAS, The proposed rent rate is $0.43 per square foot, but the City will provide a dollar for dollar rent credit for capital repairs, improvements, and remedial work completed by Wrightspeed, but shall not exceed approximately three years of rent; and
WHEREAS, During the first five years, after the property is conveyed to the City by the Navy, Wrightspeed will have an option to purchase the premises at a fixed price of $8 million, which exceeds the fair-share infrastructure burden for the 5.2-acre site consistent with the approved Master Infrastructure Plan for Alameda Point and the Alameda Point Development Impact Fee; and
WHEREAS, the proposed monthly base rent for the premise is $46,996 for year one. Base rent shall escalate three percent per year; and
WHEREAS, Building 41 has not been occupied since the base closed in 1997 and requires a significant capital investment; and
WHEREAS, Wrightspeed will place $1 million in an Improvement Fund prior to commencement of the lease. The fund will be drawn down as approved capital projects are initiated; and
WHEREAS, in the event the tenant has not completed the approved capital improvements, the City will have the right to access the funds to complete the improvements. The overall improvement budget for reuse of Building 41 is expected to cost over $2 million; and
WHEREAS, if Wrightspeed exercises the first five-year option to lease, they will be required to make a security deposit equaling one month's rent in addition to the monthly rent; and
WHEREAS, Wrightspeed 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; and
WHEREAS, Wrightspeed will need to use areas of the base to test vehicles on an ad-hoc basis. The vehicle testing portion of the agreement will be provided through a license agreement to allow the City flexibility to provide the space around development and the eventual development of the Northwest Territory by the Veteran's Administration.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or his designee is hereby authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease with Wrightspeed, Inc., a Delaware Corporation, for Building 41 located at 650 West Tower Avenue at Alameda Point for seven years with two additional five-year options, subject to such technical or clarifying revisions as are reasonably determined necessary by the City Manager and approved by the City Attorney, and the City Clerk is hereby authorized and directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council of the City of Alameda hereby declares that it would have passed this ordinance, and each section, subsections, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases are declared to be invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage.
_____________________________
Presiding Officer of the City Council
Attest:
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Lara Weisiger, City Clerk
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I, the undersigned, hereby certify that the foregoing resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 20th day of January, 2015, by the following vote to wit:
AYES:
NOES:
ABSENT: ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 21st day of January, 2015.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
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Janet C. Kern
City Attorney