Title
Introduction of Ordinance Approving Two Leases and Authorizing the City Manager to Execute the Terms of Lease with National Response Corporation, Environmental Services (NRC) for Building 15 Located at 1605 Ferry Point and Building 616 Located at 1750 Orion Street at Alameda Point for Five and Two Years, Respectively. [In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities.] [Requires Four Affirmative Votes] (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Approving Two Leases with National Response Corporation, Environmental Services for Building 15 Located at 1605 Ferry Point and Building 616 Located at 1750 Orion Street for Five and Two Years, respectively and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of the Leases
BACKGROUND
In 2008, National Response Corporation, Environmental Services (NRC) was awarded the port management contract for Alameda Point. As part of their role as port manager, NRC paid no rent. After the City selected a new port manager in March 2016, NRC’s use of the property required a lease with the City. Currently, NRC is under a temporary license, awaiting approval of the proposed leases. Upon commencement of the lease, if approved by the City Council, the license will be terminated.
DISCUSSION
Building 15, also called “the boat house” is a 16,603-square-foot, two-story administrative office, including the adjoining boat house. The building is located in the State of California Tidelands Trust area and is well-suited for a maritime user, such as NRC.
The following summarizes the major business terms of the lease agreement for Building 15:
|
Terms |
Building 15 |
|
Square Footage |
16,603 |
|
Uses |
Administrative office functions |
|
Length of Term |
5 years |
|
Extension Options |
None |
|
Purchase Option |
None |
|
Monthly Base Rent |
$16,603 - $18,687 |
Building 616 is a 1,800-square-foot building and covered area which will be used for administration, storage of service vessels, equipment and vehicles. This facility is located in the Enterprise District that the City is activing marketing for a long-term commercial job-generating use, therefore it has a shorter term to allow flexibility for new development. This lease will not interfere with the marketing of the Enterprise District.
The following summarizes the major business terms of the lease agreement for Building 616:
|
TermsBuilding 616 |
|
|
Square Footage |
1,800 |
|
Uses |
Administrative office functions, storage of service vessels, equipment, supplies and vehicles. |
|
Length of Term |
2 Years |
|
Extension Options |
None |
|
Purchase Option |
None |
|
Monthly Base Rent |
$11,325 - $11,665 |
Neither of these leases include options to purchase.
FINANCIAL IMPACT
These leases represent new revenue because the City was not receiving rent for these properties previously. These monies from the leases will be deposited into the Base Reuse Lease Revenue Fund (Fund 858) and are limited to uses permitted under the Economic Development Conveyance Memorandum of Agreement with the United States Navy (Navy).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities.
RECOMMENDATION
Approve an ordinance approving two leases with National Response Corporation, Environmental Services for Building 15 located at 1605 Ferry Point and Building 616 located at 1750 Orion Street for Five and Two Years, respectively and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of the Leases.
Respectfully submitted,
Jennifer Ott, Base Reuse Director
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Leased Premises
2 NRC Lease for Building 15
3. NRC Lease for Building 616