Title
Recommendation to Approve an Amendment to the Construction Ground Lease Deed of Trust (with Security Agreement, Fixture Filing and Assignment of Rents and Leases) for the Alameda Theater Allowing Alameda Entertainment Associates, L.P. to Incur Additional Debt in the Amount of $1.6 Million for Theatre Upgrades and Allowing the Successor Agency's Outstanding Loan to be Subordinate to Such Additional Debt. [SACIC] (Base Reuse and Community Development 207)
Body
To: Honorable Chair and Members of the Successor Agency to the Community Improvement Commission
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
In 2005, the Community Improvement Commission (CIC) of the City of Alameda (City) (now the Successor Agency to the CIC) entered into a Disposition and Development Agreement (DDA) with Alameda Entertainment Associates, L.P., a California limited partnership, for the redevelopment of the Alameda Theater. As part of the DDA, a number of documents were executed in support of project implementation. One of these documents is a Construction Ground Lease Deed of Trust (with Security Agreement, Fixture Filing and Assignment of Rents and Leases) (Deed of Trust). (Exhibit 1). This requested action would amend the Deed of Trust to allow Alameda Entertainment Associates, L.P. to assume additional private debt in the amount of $1.6 million, to which the Successor Agency would subordinate its outstanding loan balance of approximately $1.2 million. Alameda Entertainment Associates, L.P. proposes to use the funds to upgrade the theater and cineplex's seating and institute reserved seating.
BACKGROUND
Restoration of the Alameda Theater and construction of the cineplex and downtown parking garage was a major redevelopment project that anchored the revitalization of Park Street and the surrounding downtown neighborhood. This redevelopment project was a partnership between the CIC and Alameda Entertainment Associates, L.P. and has been successfully operatin...
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