Title
Introduction of Ordinance Approving a Second Amendment to a License with Amber Kinetics, Inc. for Twenty-Four Months for Use of an Unimproved Lot Located at 641 West Red Line Avenue at Alameda Point and Authorizing the City Manager to Execute the Necessary Documents. [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 Second Amendment to a License with Amber Kinetics, Inc. for Twenty-Four Months for Use of an Unimproved Lot Located at 641 West Red Line Avenue at Alameda Point and Authorizing the City Manager to Execute the Necessary Documents
BACKGROUND
Amber Kinetics, Inc. (Amber Kinetics) is a technology company that provides safe, environmentally sustainable, multi-hour kinetic energy storage. Amber Kinetics’ flywheel technology is the world’s only multi-hour mechanical battery that can be used to store kinetic energy that can be used later by their customers. Amber Kinetics customers include utility companies (both investor and municipality owned) which include Alameda Municipal Power, Hawaiian Electric, West Boylston Municipal Light Plant in Massachusetts, and Solar Integration (a company operating a solar farm in South Australia).
In 2014 Amber Kinetics entered into a short term license agreement with the City and began occupying an unimproved lot located at 641 West Red Line Avenue which is located at Alameda Point (shown on Exhibit 1). In January 2016, prior to the original license agreement expiring, a First Amendment was executed with a new expiration date of May 4, 2018. This Second Amendment is intended to retain this tenant for another twenty-four (24) months. Although licenses are not typically presented to Council, this Second Amendment will extend the term beyond the 5 year limit in Alameda Municipal Code (AMC) 2-59.3 and therefore Council approval is required.
DISCUSSION
641 West Red Line Avenue is an unimproved lot which consists of approximately 10,000 square feet of rentable space. As shown on Exhibit 1, the unimproved lot is located in between West Red Line Avenue and Main Street near the O’Club and is not in the path of redevelopment at Alameda Point. Amber Kinetics uses this unimproved lot as a test site for their technology which has been critical for conducting engineering and manufacturing tests, validating new features, and testing customer flywheels.
Under this Second Amendment the administrative fee for use of the lot will be a competitive market rate of $3,600 per month, an increase from the $2,200 per month set under the First Amendment. The Second Amendment defers to the Original Lease’s standard insurance, indemnity, assignment and termination clauses which the City of Alameda requires in all its leases.
The following summarizes the major business terms of the lease amendment agreement:
|
Terms |
641 West Redline Avenue |
|
Square Footage |
10,000 sq. ft. of land |
|
Uses |
Test site for electrical storage systems including construction of two (2) 8’ x 8’ x 10’ (L x W x H) precast concrete vaults and surface shed to house related electrical and communications equipment. |
|
Length of Term |
24 months |
|
Monthly Administrative Fee |
$3,600 |
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
Introduce an Ordinance approving a second amendment to a license with Amber Kinetics, Inc. for twenty-four months for use of an unimproved lot located at 641 West Red Line Avenue at Alameda Point and authorize the City Manager to execute the necessary documents.
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Director
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. Aerial Map
2. Second Amendment
3. First Amendment
4. License