Title
Introduction of Ordinance Authorizing the City Manager or His Designee to Execute an Amendment to the Lease with Pacific Shops, Inc. for the Tidelands Property Located along Clement Street between Alameda Marina Drive and Willow Street, Generally Known as Alameda Marina. (Community Development 216)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
On May 16, 2012, the City of Alameda (City) entered into a Tidelands lease agreement (Lease) with Pacific Shops, Inc. (PSI) for a portion of the property referred to as the Alameda Marina. The initial term of the Lease is 25 years and continues until May 15, 2037, unless terminated sooner. The Lease provides PSI an option to extend the initial term for 41 years, subject to three conditions precedent. PSI has satisfied all but one of the conditions precedent to exercising its option to extend the Lease term. However, PSI anticipates that it will not be able to obtain all permits and land use entitlements (collectively, Approvals) required by governmental agencies exercising jurisdiction over the Alameda Marina Master Plan development project by December 31, 2019, as required under the Lease. Staff is recommending that City Council amend the Lease to allow PSI to exercise its option to extend the Lease term and grant PSI an extension of time to obtain the Approvals until December 31, 2020 (Approvals Deadline). The amendment will reflect that if the Approvals are not obtained by the Approvals Deadline, the City may revoke PSI's prior exercise of the option causing the Lease to expire at the end of the initial Term.
BACKGROUND
The Alameda Marina property is a 44-acre site located on Clement Avenue between Alameda Marina Drive and Willow Street comprised of approximately 27 acres of uplands and submerged lands owned by PSI and an adjacent 17 acres of waterfront land and submerged lands owned by the City in trust for the State of California. Neighboring land uses include Alameda Municipa...
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