Title
Adoption of Resolution Establishing the City of Alameda’s Policy Regarding the Implementation of the COVID-19 Enforcement Provisions of Its Alameda Point Rent Abatement Lease Amendments. (Community Development 819099)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The recommended action will establish a City of Alameda (City) policy for implementing the COVID-19 enforcement provisions included in the Alameda Point rents abatement program lease amendments (the “Lease Amendments”). The proposed policy is consistent with previous Council direction to transfer authority to initiate lease enforcement actions to the City Council.
BACKGROUND
On December 15, 2020, the City Council approved on final passage an Ordinance authorizing lease amendments with Alameda Point Beverage Group, Auctions By the Bay, Building 43 & Associates, Faction Brewing, Group Delphi, Proximo Spirits, Saildrone and USS Hornet Air & Space Museum via the Non-Profit Spirits Alley Program for Rent Relief in response to the Covid-19 Pandemic. On January 5, 2021, the City Council approved additional similar lease amendments with Pacific Pinball Museum and Wonky Kitchen.
At the January 5 City Council Meeting, the City Council directed staff to return with a proposed policy on implementation of certain provisions of the Lease Amendments concerning the exercise of remedies and enforcement of lease penalties for violations of COVID-19 restrictions (the “COVID Provisions”).
Subsequently in the same meeting, when addressing similar rent relief lease amendments with Rock Wall Winery and St. George Spirits on first reading, the City Council modified Section 4 of the Rock Wall Winery lease amendment and Section 5 of the St. George Spirits lease amendment to make clear that the City Council retains the sole authority to exercise remedies and enforce lease penalties for non-compliance with COVID-19 restrictions.
DISCUSSION
The proposed COVID-19 enforcement policy was developed to reflect City Council direction from its January 5 meeting and to ensure consistency with City Council modification of Rock Wall Winery and St. George Spirits’ leases to require prior City Council authorization before staff undertakes COVID related lease enforcement actions.
Similarly, to further reflect the City Council’s direction from its January 4 and December 15 Meetings, expressing intent to only enforce against serious and/or repeated violations, the proposed policy has been structured to account for both the number of violations by a tenant, as well as the severity of such violations.
ALTERNATIVES
• Adopt the Resolution Establishing the City’s Policy Regarding the Implementation of the COVID-19 Enforcement Provisions of its Alameda Point Rent Abatement Lease Amendments as described.
• Disapprove the Resolution and provide City staff with direction for an alternative policy for the implementation of the COVID-19 enforcement provisions.
FINANCIAL IMPACT
There is no financial impact from the adoption of the Resolution.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a Resolution establishing the City of Alameda’s Policy regarding the implementation of the COVID-19 Enforcement Provisions of its Alameda Point Rent Abatement Lease Amendments.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval. This action would continue the provisions that the business would be required to comply with the Health Order, while at the same time providing several steps of appeals if they believe the enforcement of the violation was in error or did not merit the action of termination of the loan agreement. It provides initially an administrative step with ultimate decision making to the City Council.
Respectfully submitted,
Yibin Shen, City Attorney
By,
J. Aaron Duffy, Staff Counsel
Financial Impact section reviewed,
Annie To, Finance Director
cc: Eric Levitt, City Manager