Title
Introduction of Ordinance Authorizing the City Manager to Execute a Second Amendment to the Lease with Dreyfuss Capital Partners, a California Limited Liability Company to Extend the Term for Five Years for Building 29, Located at 1701 Monarch Street, at Alameda Point. (Community Development 29061822) [Not heard on July 20, 2021]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The requested action would authorize execution of a second amendment to the lease with Dreyfuss Capital Partners (DCP) to extend the lease term for four years, 11 months, and set monthly rent during the extended term for Building 29, containing approximately 8,107 square feet of rentable space located at 1701 Monarch Street at Alameda Point (Premises [Exhibit 1]).
BACKGROUND
DCP leases a multi-tenant building that is subleased to skilled workers, craftspeople, and artists. DCP has been a tenant at Alameda Point since 2009. Building 29 is one of the last remaining multi-tenant shop/office spaces at Alameda Point, and includes approximately 8,107 square feet of work, office and shared spaces, providing creative and living wage jobs to skilled fabricators, welders, and artists working in mediums such as steel, metal, and glass. A recent review of the financials for the tenant shows that the rent collected from the sub-tenants and the cost of utilities for the building equate to the City of Alameda's (City) monthly rent reflected in the lease.
In 2016, the City executed a new lease with DCP with a five (5) year term (Exhibit 2). In 2020, a first amendment to the lease (Exhibit 3) was executed, extending the term for an additional twelve (12) months, terminating February 28, 2022. The second amendment (Exhibit 4) extends the term of the lease for an additional four years and 11 months, until January 31, 2027, and continues to provide the City the right to terminate the lease at any time with twelve (12) months prior written notice.
Staff believes that...
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