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Recommendation to Provide Direction to Staff on Responses Received to the Request for Proposals for Leasing Building 19 Located at 2175 Monarch Street; and, if Recommendation is Approved: and
Introduction of Ordinance Authorizing the Interim City Manager, or Designee, to Execute a Third Amendment to the Lease, Substantially in the Form of the Attached Agreement, with Saildrone, Inc., a Delaware Corporation, for Building 12, Located 1050 West Tower Avenue, Alameda, CA, to Add Building 19, Located at 2175 Monarch Street, Alameda, CA, to the Premises with a Five Year Lease Term with Five Year Option to Extend. (Community Development 29061822)
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EXECUTIVE SUMMARY
The City of Alameda (City) received four competitive proposals for Building 19 from Astra Space Operations, Inc. (Astra), Pyka, Inc. (Pyka), Rain Industries Inc. (Rain), and Saildrone, Inc. (Saildrone). On July 12, 2022, staff brought a recommendation to City Council to lease Building 19 to Saildrone, and intended to return to City Council with a proposed amendment to Saildrone's existing lease if this recommendation was approved. However, City Council did not approve staff's recommendation and directed staff to return to City Council with additional information.
In response to City Council's direction, each Building 19 applicant was asked to provide staff with greater detail regarding its intended use and tenancy of Building 19, and its ability to pay rent and honor other financial lease obligations. The City employed Keyser Marston Associates (Keyser Marston), a real estate economics advisory firm, to evaluate the financial strength of each company. On July 13, 2022, Astra advised the City that it was revoking its offer to lease Building 19. Pyka has also advised the City that it is no longer interested in leasing Building 19, so long as it is able to lease Building 11.
Staff is seeking City Council direction on the remaining proposals for leasing Building 19 received from Rain and Saildron...
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