Title
Introduction of Ordinance Approving and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of the Lease with Complete Coach Works, a California Corporation, for a Lease for Two Years and Nine Months in a Portion of Building 24 Located at 2301 Monarch Street 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 and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of the Lease with Complete Coach Works, a California Corporation, for a Lease for Two Years and Nine Months in a Portion of Building 24 Located at 2301 Monarch Street at Alameda Point.
BACKGROUND
Complete Coach Works (CCW) is a manufacturing and repair company that specializes in the rehabilitation and retrofitting of bus and locomotive fleets. The facility is also used for industrial vehicle sales and leasing, painting, finishing and storage.
In January of 2014, CCW executed a Landlord's Consent to Assignment to buy out the previous tenant of Building 24, American Bus Repairs, LLC and has since entered into a license agreement to occupy the premises. The term of this lease has been adjusted so the total tenancy will be three years.
DISCUSSION
Building 24 is a large hangar with three bays at Alameda Point. Complete Coach Works occupies Bay 1, a former Navy jet painting facility, and an adjacent parking area, employing 15 on site personnel. Bay 1 makes up approximately 14,997 square feet of the building while the remainder is occupied by Rock Wall Wine Company.
The current rent is $10,480 per month. The proposed 33-month lease with CCW for Bay 1 of Building 24 requires payment of $10,794 monthly for year one, $11,118 for year two and $11,451 for the remaining nine months of the term. The tenant will also be required to increase the amount it holds as a security deposit equal to one month rent. The lease contains the standard insurance, indemnity, assignment and termination clauses the City of Alameda requires in all its leases. Base rent shall escalate 3% per year as outlined below:
Months |
Rent/SF |
Monthly |
Annually |
0-12 |
$0.72 |
$10,794.00 |
$129,528.00 |
13-24 |
$0.74 |
$11,117.82 |
$133,413.84 |
25 until end of Term |
$0.76 |
$11,451.35 |
$137,416.20 |
· Base rent shall escalate three percent (3%) per year.
· CCW employs approximately 15 people at the premises.
FINANCIAL IMPACT
The monies from the new lease will be deposited into the Base Reuse lease revenue fund and are limited to uses permitted under the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
There is no impact on the Municipal Code.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
RECOMMENDATION
Approve an Ordinance authorizing the City Manager to execute documents necessary to implement the terms of the lease with Complete Coach Works, a California Corporation, for a lease for two years and nine months in a portion of Building 24 located at 2301 Monarch Street 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