Title
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a Lease with Pacific Pinball Museum for Three Years with No Extension Options and an Early Termination Right in Building 169, Suite 101 Located at 1680 Viking Street at Alameda Point. [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 Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a Lease with Pacific Pinball Museum for Three Years with No Extension Options and an Early Termination Right in Building 169, Suite 101 Located at 1680 Viking Street at Alameda Point
BACKGROUND
Pacific Pinball Museum (PPM) is a non-profit organization that started in 2002 and has been a tenant at Alameda Point since 2006. The goals of PPM are to: inspire an interest in electricity, physics, math and the wonders of science; stimulate an interest and appreciation for art; provide a mentor center to encourage students to learn about science, art and history; create the first pinball museum in the US and preserve a valuable collection of pinball machines; educate the public on the history of the pinball machine and its impacts upon American history, art and technology; and create a destination that is educational, entertaining, and enjoyed by the entire family.
PPM had occupied Building 13, located at 2100 Ferry Point at Alameda Point since 2006, and most recently signed a five-year lease for Building 13 in 2012. Although PPM’s current lease for Building 13 was valid through October 31, 2017, due to Site A development at Alameda Point, PPM needed to be relocated to Building 169, Suite 101, which is why they were offered a below market-rate rent.
DISCUSSION
PPM’s Alameda Point facility will serve as a warehouse, staging gallery and a workshop supporting their museum/art gallery on Webster Street. This proposed lease with PPM is for three years with no extension option and allows the City to terminate the lease early because Building 169 is located in the Enterprise District development area. Any time after the thirteenth (13th) full month of the lease, PPM will have the right to provide a ninety day (90) notice to terminate this lease. This lease will not interfere with any future plans for the Enterprise District.
PPM is currently under a temporary license for Building 169, Suite 101 until this new proposed lease is approved. Under the temporary license PPM is paying $10,839 per month, which is the same as the initial monthly base rent for months one-to-twelve (1-12) under the proposed new lease. This temporary license will be terminated once this lease is approved.
The following table summarizes the major business terms of the lease agreement:
|
Terms |
Building 169, Suite 101 |
|
Square Footage |
43,555 |
|
Uses |
Warehouse and repair facility for historical pinball machines and all related administrative functions |
|
Length of Term |
3 years with early termination right |
|
Extension Options |
None |
|
Monthly Base Rent |
$10,838.75 - $11,498.83 ($0.24 -$0.26/sf) |
|
1 - 12 |
$10,838.75 |
|
13 - 24 |
$11,163.91 |
|
25 - 36 |
$11,498.83 |
FINANCIAL IMPACT
The 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 a lease and authorize the City Manager to execute documents necessary to implement the terms of a lease with Pacific Pinball Museum for three (3) years with no extension options and an early termination right in Building 169, Suite 101 located at 1680 Viking Street at Alameda Point.
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Director
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Map of Premises
2. Leased Premises
3. Parking Areas
4. Final Lease