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Adoption of Resolution Amending Fiscal Year 2018-19 Base Reuse Fund Budget by Appropriating $538,128 from the Building Sales Proceeds for Reimbursement for Additional Work Performed While Installing a Portion of the Joint Trench at Alameda Point. (Base Reuse 858)
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.To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
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EXECUTIVE SUMMARY
Staff is requesting that City Council approve a reimbursement to Alameda Point Redevelopers (APR), in the amount of $538,127 for additional work requested on the Alameda Point Joint Trench project. In February 2016, the City Council approved a lease with a purchase option with APR. In lieu of a Development Impact Fee, the tenant agreed to install approximately $1.8 million of public infrastructure improvements consistent with the Alameda Point Master Infrastructure Plan (MIP). The tenant, in consultation with staff, installed the critical backbone of utilities called the "joint trench," which will eventually connect new service lines to the services being brought in through the Site A development. During construction, additional work was requested by Alameda Municipal Power (AMP) and the City to extend the trench an additional block, providing much-needed redundancy in the system in the event of outages. This reimbursement is for increased costs associated with this additional work.
BACKGROUND
In February 2016, the City Council approved a 10-year lease with APR for Building 8, located at 2350 Saratoga Street at Alameda Point. Building 8 is a 270,000 square foot, three-story building, located in the historic "shops" area. The lease contained a purchase option, which was executed in November 2018, and the building is now privately owned. The purchase price for the premises was $10.3 million, which included a $1.8 million infrastructure improvement credit.
The infrastructure improvement credit could only be applied to off-site infrastructure improvements done in fu...
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