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Title
WITHDRAWN - Introduction of Ordinance Authorizing the Interim City Manager, or Designee, to Execute a Fourth Amendment to the License with Amber Kinetics, Inc., a California Corporation, to Extend the License Term for Twelve Months for the Unimproved Lot Located at 641 West Red Line Avenue, Alameda, CA. (Community Development 29061822) [Not heard on September 6, 2022 and will not be heard on September 20, 2022]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The requested action would (i) authorize execution of a fourth amendment to the license dated April 1, 2014, as amended (License), with Amber Kinetics, Inc. (Amber Kinetics) to extend the license term for twelve (12) months, with one 12-month renewal option subject to approval of the Interim City Manager or designee, and (ii) establish monthly rent during the extended term for the unimproved lot located at 641 West Red Line Avenue, consisting of approximately 10,000 square feet of rentable land at Alameda Point (Premises [Exhibit 1]).
BACKGROUND
Amber Kinetics is a manufacturer of energy storage technologies with a mission to accelerate the world towards safer, more cost-effective, and environmentally sustainable solutions for storing energy. In 2014, the City of Alameda (City) and Amber Kinetics entered into the License (Exhibit 2) for use of the unimproved lot located at 641 West Red Line Avenue for electrical systems storage, including two below-ground precast vaults and a surface shed to house electrical and communications equipment. The License has been extended three times and currently terminates May 4, 2022; the current monthly License fee is $3,800.
DISCUSSION
This Fourth Amendment to the License (Exhibit 6) (i) extends the term of the License for an additional twelve (12) months with a termination date of May 4, 2023, (ii) increases the License fee by 10% to $4,180 per month and (iii) provides one 12-month renewal option upon three (3) months written notice and an increased License fee during the extension term of $4,389, or an additional 5%.
The proposed rent structure for the additional twelve (12) month term and one 12-month renewal option is described below:
|
Months |
Monthly |
|
1-12 |
$4,180.00 |
|
13-24 (Renewal Term) |
$4,389.00 |
The Fourth Amendment provides both the City and Amber Kinetics the right to terminate the License at any time upon ninety (90) days’ prior written notice.
ALTERNATIVES
• Approve the Fourth Amendment with Amber Kinetics, as described above, for the unimproved lot located at 641 West Red Line Avenue at Alameda Point.
• Direct staff to renegotiate all or some of the terms of the Fourth Amendment based on City Council direction.
• Direct staff to seek and market the property to other prospective tenants.
FINANCIAL IMPACT
The revenue from the License will be deposited into the Base Reuse/Alameda Point Fund (Fund 290) lease revenue account and is limited to uses permitted under the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with Alameda Municipal Code.
SURPLUS LANDS ACT
The proposed transaction is not subject to the Surplus Land Act, as amended by AB1486 (2019), because the term of the License extension is less than five years. See HCD Surplus Land Act Guidelines, Section 102(h).
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to
CEQA Guidelines Section 15301(c) (Existing Facilities).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Introduce an ordinance authorizing the Interim City Manager, or designee, to execute a Fourth Amendment to the License with Amber Kinetics, Inc., a California corporation, to extend the License term for twelve months for the unimproved lot located at 641 West Red Line Avenue, Alameda, CA.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By,
Lorie Curtis, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. License Area
2. License
3. First Amendment
4. Second Amendment
5. Third Amendment
6. Fourth Amendment
cc: Nancy Bronstein, Interim City Manager