2007-06-06 ARRA PacketAGENDA
Special Meeting of the Governing Body of the
Alameda Reuse and Redevelopment Authority
********
Alameda City Hall
Council Chamber, Room 391
2263 Santa Clara Avenue
Alameda, CA 94501
1. ROLL CALL
2. Public Comment on Non-Agenda Items Only.
Wednesday, June 6, 2007
Meeting will begin at 6:00 p.m.
Anyone wishing to address the Board on non-agenda items only, may speak for a
maximum of 3 minutes per item.
3. ADJOURNMENT TO CLOSED SESSION OF THE ARRA TO CONSIDER:
3-A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
Property: 2151 Ferry Point, Alameda, CA
Negotiating parties: City of Alameda and Alameda Naval Air Museum
Under negotiation: Lease price and terms
3-B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
Property: Alameda Naval Air Station
Negotiating parties: ARRA and Sun Cal Companies
Under negotiation: Price and Terms
Announcement of Action Taken in Closed Session, if any.
4. ADJOURNMENT
Notes:
• Sign language interpreters will be available on request. Please contact the ARRA Secretary at 749-5800 at
least 72 hours before the meeting to request an interpreter.
• Accessible seating for persons with disabilities (including those using wheelchairs) is available. Minutes of
the meeting are available in enlarged print.
• Audio tapes of the meeting are available for review at the ARRA offices upon request.
AGENDA
Regular Meeting of the Governing Body of the
Alameda Reuse and Redevelopment Authority
Alameda City Hall
Council Chamber, Room 390
2263 Santa Clara Avenue
Alameda, CA 94501
1. ROLL CALL
2. CONSENT CALENDAR
Wednesday, June 6, 2007
Meeting will begin at 7:00 p.m.
Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a
request for removal for discussion or explanation is received from the Board or a member of the public.
2 -A. Approve the minutes of the Special Meeting of May 8, 2007.
3. REGULAR AGENDA ITEMS
3 -A. Oral Report Update — Alameda Point Master Developer
3 -B. ARRA Budget Update
4. ORAL REPORTS
4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative.
5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT)
(Any person may address the governing body in regard to any matter over which the
governing body has jurisdiction that is not on the agenda.)
6. COMMUNICATIONS FROM THE GOVERNING BODY
7. ADJOURNMENT
This meeting will be cablecast live on channel 15.
Notes:
• Sign language interpreters will be available on request. Please contact the ARRA Secretary at 749 -5800 at
least 72 hours before the meeting to request an interpreter.
• Accessible seating for persons with disabilities (including those using wheelchairs) is available.
• Minutes of the meeting are available in enlarged print.
• Audio tapes of the meeting are available for review at the ARRA offices upon request.
APPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Wednesday, June 6, 2007
The meeting convened at 7:26 p.m. with Chair Johnson presiding.
1. ROLL CALL
Present: Beverly Johnson, Chair of Alameda
Marie Gilmore, Boardmember, City of Alameda
Doug deHaan, Boardmember, City of Alameda
Frank Matarrese, Boardmember, City of Alameda
Lena Tam, Boardmember, City of Alameda
2. CONSENT CALENDAR
2-A. Approve the minutes of the Special Meeting of May 8, 2007.
2-A
Approval of the consent calendar was motioned by Member Matarrese, seconded by
Member Gilmore and passed by the following voice vote: Ayes — 5; Noes — 0; Abstentions —
O.
3. REGULAR AGENDA ITEMS
3-A. Oral Report Update — Alameda Point Master Developer
Debbie Potter, Base Reuse and Community Development Manager, summarized the status of the
Master Developer negotiations. Staff and Sun Cal kicked off the due diligence process on May
13, 2007, and negotiation of the Exclusive Negotiating Agreement (ENA), which will govern the
entitlement process over the next 24 months, is actively underway. The sixty day due diligence
period ends on July 12th and if Sun Cal elects to go forward with the project, the ENA will be
presented to the ARRA Board for its consideration at a Special meeting on July 18.
Michael Perata, Vice President of Acquisitions for Sun Cal, arrived late (after Item 3-B closed),
and Chair Johnson re-opened Item 3-A in order for him to give Sun Cal's update on the due
diligence process.
3-B. ARRA Budget Update
Leslie Little, Development Services Director, gave a powerpoint presentation on the annual
ARRA Budget update. The presentation discussed highlights of the year just completed, and
projections for moving forward. Major highlights include the stabilization of ARRA lease
revenue, payment of full AP Bond, and payment of Citywide Development fee.
4. ORAL REPORTS
4-A. Oral report from Member Matarrese, Restoration Advisory Board (RAB)
representative.
There was no report, as the next RAB meeting is tomorrow night (6/7). Member Matarrese will
provide a report at the next ARRA meeting.
5. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT)
There was one speaker, Kevin Kearny, City Auditor, who spoke about lease and procedural
issues at Alameda Point, specifically the results of an interim audit which showed significant
write-offs of tenant rents at Alameda Point. Mr. Kearny wanted to understand the process by
which the ARRA makes decisions regarding tenants that are in arrears with their rent, or that
have other contractual problems. Leslie Little explained that there is a procedure in place given
to staff by the ARRA, that any lease negotiation be brought to ARRA for policy direction. Mr.
Kearny was interested in seeing the documentation that supports the decision of the current lease
(for the specific tenant being referred to).
Member Matarrese requested that this issue be agendized so that it can be discussed formally.
6. COMMUNICATIONS FROM THE GOVERNING BODY
Member deHaan discussed the economic viability of building residential at Alameda Point.
Member Gilmore clarified what Member deHaan meant by "affordability" of homes and
discussed that the economic driver of the project was not just the homes, but the type and mix of
homes that make it market driven for the developer.
7. ADJOURNMENT
Meeting was adjourned at 8:24 by Chair Johnson.
Respectfully submitted,
Irma Glidden
ARRA Secretary
Alameda Reuse and Redevelopment Authority
Interoffice Memorandum
June 6, 2007
To: Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
From:
Debra Kurita
Executive Director
Re: ARRA Budget Workshop
BACKGROUND
In April 2006, staff outlined many of the significant challenges that lie ahead for the ARRA
budget and also for the General Fund.
For the ARRA budget, those challenges were specifically related to transition planning reflecting
two alternative events; Alameda Point Community Partners (APCP) exercising its option to
proceed or abandon development of Alameda Point. One year later, the ARRA has selected a
new master developer, but these decision milestones are still unresolved and therefore still need
to be considered when examining the ARRA's future fiscal plan.
DISCUSSION
Staff and the ARRA Board began transition planning two years ago. In 2005, it was expected
that if APCP elected to proceed, then the ARRA would begin to transition activities based upon
concurrently processing development entitlements and negotiating a Disposition and
Development Agreement with APCP. It was expected that the entitlement process and DDA.
negotiations would last 18 months and conclude in December 2006. It was also anticipated that
as of January 2007, consistent with the terms of the negotiations, the ARRA. would begin
conveyance of land at Alameda Point, and APCP would assume most, if not all, of the activities
currently performed by ARRA /City staff at Alameda Point. These activities include property
management, leasing, grounds care, planning, etc. The 2005 -06 approved budget was based
upon those changes in the ARRA operations as well as the impacts to the General Fund.
In the event that APCP elected not to proceed, ARRA staff developed an alternative
development path that involved seeking out another developer and beginning a new negotiation
process.
Because the loss of APCP and the new developer search delayed conveyance of property from
the Navy, the budget presented is in a cash flow form, making assumptions relative to continued
property maintenance and facility management. The delay has resulted in another full fiscal year
of ARRA revenue and expenditures (FY 06/07). The one major change is the resulting new
income from the renegotiated MARAD lease.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
RECOMMENDATION
June 6, 2007
Page 2
The Executive Director recommends no action at this time. This is an informational workshop.
The ARRA budget will be approved as part of the City's overall budget.
Respect
•/o,
Les le Little
Development Services Director
lily submitted,
Attachments:
1. ARRA Lease Revenue Cash Flow (2005-2017)
2. Interim Leasing Status Report