Title
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 10-Year Lease with Power Engineering Construction Company for Building 166 located at 1501 Viking Street, Suite 200 at Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 10-Year Lease with Power Engineering Construction Company for Building 166 located at 1501 Viking Street, Suite 200 at Alameda Point
BACKGROUND
Power Engineering Construction Company (Power Engineering) builds complex marine construction and civil engineering projects and has been an Alameda Point tenant since 2005. Starting in 2010, they have been occupying the premises on a month-to-month basis. Based on the approved plans for Alameda Point, this maritime use that focuses on high-paid jobs and high-profile ferry terminal and shoreline improvement work is consistent with the long-term vision for the Enterprise District and plans for economic development at Alameda Point.
DISCUSSION
Located at 1501 Viking Street, Suite 200, Building 166 consists of approximately 55,471 square feet of rentable space. The premises will be used for warehouse, yard storage of equipment and raw construction materials, project specific manufacturing needs and related administrative office use.
The lease includes one subtenant, Delta Soundblasting, who does work in conjunction with Power Engineering. Power Engineering employs approximately 90 union construction employees, engineers, and support staff, but typically has 10 permanent employees stationed at the Alameda office at Building 166. The following provides a monthly rent schedule for the term of the lease:
|
Months |
Rent/SF |
Monthly |
|
1-12 |
$0.42 |
$23,297.00 |
|
13-24 |
$0.43 |
$23,762.94 |
|
25-36 |
$0.44 |
$24,238.20 |
|
37-48 |
$0.45 |
$24,722.20 |
|
49-60 |
$0.45 |
$25,217.42 |
|
61-72 |
$0.46 |
$25,721.77 |
|
73-84 |
$0.47 |
$26,236.20 |
|
85-96 |
$0.48 |
$26,760.93 |
|
97-108 |
$0.49 |
$27,296.15 |
|
109-120 |
$0.50 |
$27,842.07 |
FINANCIAL IMPACT
The monies from the new lease will be deposited into the Base Reuse Department 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
This action has 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(c) (Existing Facilities).
RECOMMENDATION
Approve an ordinance authorizing the City Manager to execute documents necessary to implement the terms of a 10-year lease with Power Engineering Construction Company for Building 166 located at 1501 Viking Street, Suite 200 at Alameda Point.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer - Alameda Point
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Diagram of Leasehold Area
2. Lease