Title
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 5-Year Lease with Dreyfuss Capital Partners, a California Limited Liability Company, for Building 29 Located at 1701 Monarch Street at Alameda Point. [Requires four affirmative votes] (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 5-Year Lease with Dreyfuss Capital Partners, a California Limited Liability Company, for Building 29 Located at 1701 Monarch Street at Alameda Point
BACKGROUND
Dreyfuss Capital Partners (DCP) has been a tenant at Alameda Point since 2009. DCP is a multi-tenanted building filled with metal workers fabricating unique parts and repairs for existing tenants, kayak builders, and artists using the workspace for their craft. There are ten existing sub-tenants with work and office spaces.
DISCUSSION
The leased premises for Building 29 consists of approximately 8,107 square feet of rentable space as depicted in Exhibit 1.
The sub-tenant space comprises approximately 6,000 square feet of the premises with the remaining being office and other shared spaces. A recent review of the financials for the lease shows that the rent collected from the sub-tenants and the cost of utilities for the building is consistent with the City’s monthly rent. This building is one of the last remaining multi-tenanted shop/office spaces at Alameda Point and provides creative and living wage jobs for metal workers, craftsmen, and artists. Staff believes that an additional five years of this lease is consistent with the long term development strategy of the area and will not interfere with any plans to commence implementation of De-Pave park. The table below summarizes the projected rent over the 5-year term.
|
Months |
Monthly |
Annually |
|
1-12 |
$4,053.50 |
$48,642 |
|
13-24 |
$4,175.11 |
$50,101.32 |
|
25-36 |
$4,300.36 |
$51,604.32 |
|
37-48 |
$4,429.37 |
$53,152.44 |
|
49-60 |
$4,562.25 |
$54,747 |
FINANCIAL IMPACT
The monies from the new lease will be deposited into the Base Reuse Fund lease revenue account 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 and is consistent with the adopted Waterfront Town Center Precise Plan for Alameda Point.
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 5-Year Lease with Dreyfuss Capital Partners, a California Limited Liability Company, for Building 29 Located at 1701 Monarch Street 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. Building 29 Lease