Title
Recommendation to Direct Staff to Terminate the Lease for Building 92 at Alameda Point between the City of Alameda and Alameda Point Collaborative Prior to Expiration of the Lease Term in Exchange for Payment to Alameda Point Collaborative of a Lease Termination Payment of $831,470; and Commence a Solicitation Process to Sell Building 92 for Commercial Use. (Community Development 29061822) [Not heard on May 16, 2023]
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Building 92 in the Adaptive Reuse Area of Alameda Point was constructed in 1942 for use as a warehouse (see Exhibits 1 and 2) and is listed as a Contributing Historic Building within the Naval Air Station (NAS) Alameda Historic District (See Exhibit 3).
Building 92 is currently controlled by the Alameda Point Collaborative (APC) pursuant to a 59-year Legally Binding Agreement, which is effectively a lease (Lease), that was executed in December 2010 between APC and the Alameda Reuse and Redevelopment Authority, the predecessor-in-interest to the City of Alameda (City).
The City seeks to buyout the Lease with APC to advance its goals for the sale of Building 92 as a commercial use resulting in job generation and sale proceeds to fund continued implementation of new infrastructure in the Adaptive Reuse Area consistent with the Alameda Point Master Infrastructure Plan (MIP) and Water Infrastructure Agreement with East Bay Municipal Utility District (EBMUD).
APC is willing to surrender Building 92 to the City and terminate the Lease in advance of the Lease's actual expiration date in December 2058, in exchange for a one-time payment. The one-time payment to APC is a lease buy-out payment for the remaining 35 years of Lease term and an incentive for APC to terminate the Lease in advance of its expiration date. The one-time payment requested by APC is $831,470, which represents the cumulative amount of APC's operating deficit for Buildin...
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