Title
Recommendation to Modify Rent Relief Programs Offered at Alameda Point in Response to the Covid-19 Pandemic to Allow Loan Conversion Applicants to be Eligible for the Newly Approved Assistance for Non-Profits and Spirits Alley Businesses and to Allow Recipients of Business Assistance Grants to be Eligible for the Alameda Point Programs with the Obligation to Repay the Business Assistance Grant. (Community Development 858)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In response to the impacts of the Covid-19 pandemic, the City Council discussed a rent deferral and abatement policy at its April 21, 2020 meeting and asked staff to return with more information and recommendations on a potential rent abatement program. On October 6, 2020, the City Council authorized commencement of a "Loan Conversion" program with up to $1.5 million in funding and a new rent relief program for Non-Profit and Spirts Alley tenants with up to $400,000 for abating rent. City Council asked that the agreements come back to them for approval in the form of a lease amendment.
BACKGROUND
At its May 19 meeting, the City Council approved a Loan Conversion program for tenants where the City of Alameda (City), as landlord, converts past due rent into a loan payable over time. The loan and its repayment terms will be documented in a lease amendment.
City Council established three (3) criteria for applicants for the Loan Conversion program:
* Tenant's business operations must be consistent with the long-term land use and development plan for Alameda Point.
* Tenant must have 25 or more full-time employees or generate significant sales tax.
* Tenant must demonstrate loss of income of 35% or greater since March 17, 2020, and cannot have received a business assistance grant.
In October, City Council approved a $1.5 million budget for the Loan Conversion program, and a rent assistance program for Non- Profits and Spirits Alley.
The Non- Profits and Spirit...
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