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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