Title
Introduction of Ordinance Authorizing the City Manager to Execute a Lease Amendment for Building 360 at 1900 Skyhawk Street for a Nine-Month Rent and Fee Deferral and Subsequent Twelve-Month Deferred Repayment Schedule, with Astra Space Operations LLC. [Requires 4 affirmative votes]
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Astra Space, Inc., a Delaware Corporation (Astra) currently holds a five-year lease for Building 360, located at 1900 Skyhawk Street, a month-to-month lease of Building 397, located at 1690 Orion Street, as well as three expired licenses for property located adjacent to Building 397, at 1750 Orion Street (Buildings 616 and 609), and at Pier 3. The licenses have been held over and are paid by Astra on a month-to-month basis. In total, Astra has been paying the City of Alameda (City) nearly $168,000 per month in rent and fees over the last year.
Astra was a publicly traded company until the owners took the company private on July 18, 2024. Astra is still adjusting to the privatization process and has requested a rent and fee deferral to allow time for the company to begin generating positive revenue and to consolidate its Sunnyvale engine testing operations at its Alameda location.
Staff recommends a lease amendment for Building 360, and an administrative level consolidation of Astra's other leases and licenses into a series of new licenses with terms of less than one year. The lease amendment would permit Astra to defer 50 percent (50%) of its total lease and license fee revenue for a period of nine months, from October 1, 2024, through June 30, 2025, and to repay the deferred amount in ...
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