2009-04-01 ARRA PacketAGENDA
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
Wednesday, April 1, 2909
Meeting will begin at 7 :00 p.m.
1. ROLL CALL
2. CONSENT CALENDAR
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 Regular Meeting of March 4, 2009.
2 -13. Approve the minutes of the Special Joint Meeting of the ARRAIHABOC of March 4,
2009.
2 -C. Authorize Negotiation and Execution of a Sublease Renewal for Antiques by the
Bay, Building 13, at Alameda Point.
2 -D. Authorize Negotiation and Execution of a Sublease Renewal for Antiques by the
Bay, Building 459, at Alameda Point.
2 -E. Authorize Negotiation and Execution of a Sublease Renewal for Bay Ship Yacht
Company at Alameda Point.
2 -F. Authorize Negotiation and Execution of a Sublease for Dreyfuss Capital Partners,
Building 29, at Alameda Point.
2 -G. Authorize Negotiation and Execution of a Sublease for Dreyfuss Capital Partners,
Hangar 22, at Alameda Point.
2 -H. Approve a waiver of License Fees for Pacific Skyline Council, BSA Sea Scouts,
Ancient Mariner Regatta.
3. REGULAR AGENDA ITEMS
3 -A. LRA Presentation of Treasure island Redevelopment Jack Sylvan, San Francisco
Mayor's office.
3 -B. Alameda Point Update.
ARRA Agenda April 1, 2909
Page 2
3 -C. Alameda Point Environmental Issues Update: Radiological Substance at West
Shore of Seaplane Lagoon and Block of oversize Debris at North Shore of
Seaplane Lagoon.
4. ORAL REPORTS
4 -A. oral report from Member Matarrese, Restoration Advisory Board (RAB)
representative
Highlights of March 5th Alameda Point RAB Meeting.
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 lure on channel 15.
Notes
E 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.
0 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.
UNAPPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Wednesday, March 4, 2009
The meeting convened at 7:12 p.m. with Chair Johnson presiding.
1. ROLL CALL
Present: Chair Beverly Johnson
Boardmember Lena Tangy
Boardmember Frank Matarrese
Boardmember Marie Gilmore
Vice Chair Doug deHaan
2. CONSENT CALENDAR
2 -A. Approve the minutes of the Regular Meeting of January 7, 2099.
2 -B. Approve the minutes of the Special Meeting of February 3, 2009.
2 -C. Approve an Amendment to the Consultant Contract with Harris Associates for on -Call
Services for the Review of Land Development Entitlement Applications for the
Redevelopment of Alameda Point.
2 -D. Approve a Second Amendment to Agreement with Economic Planning Systems, Inc.,
Increasing the Budget $145,000 and Extending the Term 11 Months, to Provide ongoing
Negotiation Support for the Redevelopment of Alameda Point.
2 -E. Authorize the Executive Director to Execute a Consultant Agreement with National
Response Corporation Environmental Services in the Amount of $325,000 for
Management of Alameda Point Port for the earlier of Five Years or Until Property is
Conveyed to the Alameda Reuse and Redevelopment Authority
2 -F. Approve and Authorize the Executive Director to Execute a Second Amendment to the
Alameda Point Lease in Furtherance of Conveyance with the United States Navy.
Vice Chair deHaan pulled items 2 -D, 2 -E, and 2 -F for discussion. Approval of the balance
of the Consent Calendar (items 2 -A, 2 -8, and 2 -C) was motioned by Member Matarrese,
seconded by Member Tangy and passed by the following voice votes: Ayes: 5, Noes: 0,
Abstentions: 0
Item 2 -D Vice Chair deHaan requested more background on the term extension for EPS,
asking if it was due to a scope of work change, or duration. Debbie Potter, Base Reuse and
Community Development Manager, explained that the request is for the duration, and that the
scope of work remains the same.
Vice Chair deHaan motioned approval of Item 2-13, seconded by Member Matarrese, and
passed by the following voice votes: Ayes: 5, Noes: 0, Abstentions: 0
Item 2 -E. Leslie Little discussed that this contract with NR.0 is part of the lease requirement
with MARAD to provide port services. Vice Chair deHaan requested clarification that MARAD
was not an exclusive user of the piers, and if there were no other activities at the pier, we would
still need port services. Ms. Little explained that the driver is the MARAD lease, and that we
would need the port services regardless.
Todd Roloff, of NRC, supported Ms. Little's discussion and explained that management of the
old piers would still be needed, even if MARAD were not there, at the very least, at a `Public
works' type of level.
Vice Chair deNaan motioned approval of Item 2 -F, seconded by Member Matarrese, and
passed by the following voice rotes: Ayes: 5, Noes: 8, Abstentions: 0
Item 2 -F vice Chair deNaan has concern about losing lease revenue while the Navy does
clean -up and closure of some of the structures at Alameda Point. He also asked if there were
other buildings that would be falling into the same category. Ms. Potter explained that the lease
revenue we are currently getting from three of the buildings that are slated to be removed from
the lease premises is approx. $250,000 per year, but it is noted that several of those tenants
have already been relocated, so that we will not be losing that rent. Nelson's Marine is vacating
the premises and we will be losing approx. $05,000 per year. We have worked with the Navy to
minimize the financial impact on the environmental work that they need to do. Ms. Little pointed
out that at the end of their environmental work, if the buildings can be released, the Navy has
agreed that we can come back in the future and amend the LIFOC to put those buildings back
into the lease premises.
Member Matarrese is concerned that the $05,000 loss represents some services being cut. Ms.
Potter stated that the loss would impact our cash reserves, but that we do not anticipate a
reduction in services. Member Matarrese encourages the clean -up, but stresses the importance
to protect the assets that are being cleaned up. Ms. Little discussed that the costs for the clean-
up will be offset with other leasing activity.
Chair Johnson requested a report on the state of infrastructure on Alameda Point at a future
meeting.
Vice Chair deNaan motioned approval of Item 2 -F, seconded by Member Tangy, and passed
by the following voice votes: Ayes: 5, Noes: 0, Abstentions: 0
3. REGULAR AGENDA ITEMS
3 -A. Alameda Point Update Presentation of Project Pro Forma.
Before the presentation, Debbie Potter, Base Reuse and community Development Manager,
summarized the Alameda Point Project to date: Pursuant to the Exclusive Negotiation
Agreement, SunCal submitted a draft master plan and business plan to the City on December
10, 2008. Concurrent with this effort, staff, the City's economic consultant EPS, and SunCal,
completed the initial project pro forma. The pro forma is required to begin discussions with the
Navy regarding the property conveyance term sheet.
SunCal presented its master plan to the ARRA at its January 7 meeting. It is important to note
that SunCal considers the pro forma confidential because it contains proprietary information that
could disadvantage SunCal with its competitors.
In addition to the pro forma summary, staff will present work done on fiscal neutrality to date.
Ms. Potter also addressed a recent misconception publicly expressed that tax increment
financing at Alameda Point will consume all property tax. She explained that this is not correct
while it is true that Alameda Point is currently not on the tax rolls and isn't generating property
tax, when the property is transferred to private ownership, all property tax that is generated is
allocated by statutory formula, often referred to as the AB1290 pass throughs, to all of the
taxing entities, including the city general fund and the school district, and the redevelopment
agency.
At project build -out, the CIC will receive approximately 38% of all property tax revenue to be
used for economic development purposes. The CIC will receive an additional 20% of all
property tax revenue for affordable housing. On an annual basis, the City's general fund will
receive 11 of all property tax generated and AUSD will receive 8% of all property tax revenue.
Based on a cumulative assessed value of $5 billion at build -out, based on SunCal's draft master
plan, the General Fund will receive $5.5 million a year and AUSD will receive $4 million a year
in Alameda Point property tax payments. while the dollar amount received will vary based on
assessed valuation, the percentage of property tax allocated to the various taxing entities will
not change as it is set by state law.
Jennifer Ott, Redevelopment Manager, presented the summary of the Project Pro Forma.
Chair Johnson asked how confident we are on the timeline based on the current discussion
with the Navy. Ms. Ott replied that we have to see where their numbers come in, and they have
said before that they're not willing to negotiate. If they come in with a number that is workable
and reasonable, then the timeline is reasonab Both SunCal and ARRA are anxious to see at
what number they will come in with, as it will affect the timeline. Ms. Ott stated that a response
is expected: at the end of March.
Member Matarrese clarified that the term sheet and price was negotiated with the previous
developer in 2005, and recognized by both the Navy and the city as a draft, non- binding term
sheet. He asked that once the Navy comes back with a response (at next ARRA meeting in
April), can we expect to counter at that time. Ms. Ott explained that whether or not we counter
depends on how the Navy presents their response. Member Matarrese stressed that our Plan B
is that we cannot be passive, we have to be ready with our ability to counter and say to the
Navy, `this is our fast and best offer, take it or leave it.'
David Brandt, Acting Executive Director, clarified how the Navy approaches F,DC's under the
2005 amendment to the BRAC law, the price terms aren't negotiated the requirement is to
seek fair market value, and so the way the process works is, we give there what we believe the
costs and revenues are from the project that's being planned. The Navy then goes out and
hires a consultant to do a separate review based on our data /assumptions, and come back to
us, as they did in 2003, with their determination of the fair market value (in 2003, it was
$108.5M). It is not a negotiation, it's their number, and what you can negotiate are terms,
payment over time, payment in kind, but they cannot negotiate the price. Based on this
approach, Member Matarrese suggested taking a political step with our representatives in
Congress, stressing that those rules put in place in 2003 and 2005 are no longer applicable in
2009. The economy is different, the lending institutions are in disarray, we do not have the
same structure in which those rules were based. This is a serious option and there needs to be
policy change.
Mr. Brandt clarified that we never accepted the Navy's price and that they are willing to re -value
the property for two reasons: 1) the plan is different, and 2) the market circumstances are wildly
different. They won't negotiate with us, but will give us what they believe the fair market value is
and will probably be =take it or leave it" offer. over the years we have taken a number of
political approaches, the most recent was last summer we actually achieved legislation that
ended up being gutted in the Senate, and largely not useful to us. fills Potter further explained
that Alameda is not the only LRA interested in a no -cost conveyance, or something other than
the fair market valuation process so nationally there was a push to get the no -cost IDC
legislation resurrected as part of the stimulus bill, and they Mayor did send a letter to Senator
Boxer and Senator Feinstein expressing our interest in them supporting the no -cost EDC
legislation. That effort died in the senate before it ever even came to the floor. So there is a
wide range of views among elected officials about priorities, an appropriate process for
disposing of properties. An effort we all recognize but hard to predict the outcome.
Member Tarn suggested establishing a subcommittee of the ARRA Board to participate in the
next negotiation with the Navy. Board members agreed that it would be valuable to have this
subcommittee. Ms. Potter suggested that in the alternative, the ARRA consider the
"subcommittee" meet with Navy officials in Washington DC who actually set the policy and give
the policy direction to the folks in San Diego, and may be a worthwhile effort.
Chair Johnson requested that, to be cost efficient, she strongly prefers to meet in San Diego
with the Washington representatives. Ms. Potter will follow up with the Navy on this issue.
Member Tam motioned to establish the ARRA subcommittee to participate in Navy
negotiations, seconded by Member Gilmore and passed by the following voice votes:
Ayes: 5, Noes: o, Abstentions: o
Vice Chair deHaan requested an off agenda report on general fund expenditures and revenue
streams to support the payback.
3 -Bw Approve a Five -Year Lease and Repayment Plan/Write -off with AC Hornet
Foundation.
Leslie Little gave an overview about the particular conditions relative to the lease. Essentially,
the goal is to sign a five -year lease commitment, giving the Hornet an opportunity to repay
outstanding back rent and to assist them in building a better position to attract donor funds,
grants, etc.
John Baker, original Board of Trustees for the Aircraft Hornet Foundation and current Chairman,
introduced members of their Board, staff, and volunteers in attendance. on behalf of their
Board, Mr. Baker expressed their appreciation that the city of Alameda is considering renewing
their contract. He discussed the mission of the USS Hornet and the importance of the services
they provide.
Member Matarrese motioned approval of 3 -B, seconded by Vice Chair deHaan, and
passed by the following voice votes: Ayes: 5, Noes: o, Abstentions: o
3 -C. Provide Leasing Guidance for Proposed Autocross /Motocross Events in the
Northwest Territories at Alameda Point
Representatives from Alameda Auto Park, LLC. spoke to the Board regarding their proposal for
the autolmotocross events at Alameda Point. The ARRA Board was mostly concerned about
the potential negative elements that such an event would generate, specifically noise pollution,
intrusion on the fish and wildlife /wildlife refuge, and the level of disruption to other existing
tenants.
There were several speakers that had an opinion on the issue, both for and against the events.
i
Member Gilmore motioned for a "test day" in order to assess the potential noise and
disruption of the proposed events, seconded by Member Tarn, and passed by the
following voice votes: Ayes: 3, Noes: 2 (deHaan and Matarrese), Abstentions: 9
4. ORAL. REPORTS
4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB)
representative Highlights of February 5th Alameda Point RAB Meeting.
At Feb 51h RAB meeting the highlight was the Final Feasibility Study on Site 2, which is located
at the northwest point, and then south where the wetlands are. Member Matarrese discussed
the slides that were presented, citing slide 16 which talks about the cost of doing different
remediation scenarios, ranging from $10-$20 million to almost $1 billion (complete removal,
backfill engineering, institutional controls and offsite disposal) They are still soliciting input on
the final plan. Slide 18 talks about the Record of Decision (ROD) happening sometime after
April or May. Member Matarrese will attend tomorrow's RAB meeting and will get the figure of
how much has been spent on remediation of entire base to date,.and how much is programmed,
and will report back at the next ARRA meeting.
5. ORAL COMMUNICATIONS, NON AGENDA (PUBLIC COMMENT)
1C7iC�
5. COMMUNICATIONS FROM THE GOVERNING BODY
Vice Chair deHaan discussed the MTC Transportation oriented Development (TOD) and how
they market various sites for TODs. He explained that the real criteria for the TOD sites was a
heavy transportation corridor. Alameda was not one of the sites. In some of those, they made
recommendations of lower density under 40-units per acre. The density at the Summer House
development is 39 -units per acre.
7. ADJOURNMENT
Meeting was adjourned at 19 :29 a.m. by Chair Johnson.
Respectfully submitted,
Irma Glidden
ARRA Secretary
Present: Commissioner deHaan, Gilmore, Matarrese, Tarr, Torrey and Chair Johnson
2. CONSENT CALENDAR
2 -A. Accept Minutes of the Regular Meeting of the Board of Commissioners of the
Housing Authority of the City of Alameda Held Tuesday, January 6, 2009.
2 -B, Accept Housing Authority Audit Report for Fiscal Year Ending June 30, 2008. The
Housing Commission and Chief Executive officer recommend the Board of
Commissioners accept the audit report for the fiscal year ending June 30, 2008.
2 -C. Authorize submission of Application for Replacement Vouchers for Esperanza
Residents.
Approval of the consent calendar was
seconded by Commissioner Torrey and
Noes: 0 Abstentions: 0.
motioned by Commissioner Matarrese and
passed by the following voice motes: Ayes: 6
3. REGULAR AGENDA ITEMS
3 -A. Hold a Public Hearing to Approve an Alameda Reuse and Redevelopment
Authority Resolution Adopting an Addendum to the Final Environmental
Impact Report for the Reuse of Naval Air Station Alameda and Fleet
Industrial supply Center; Approving an Amendment to the 1996 Naval Air
Station Alameda Community Reuse Plan for the [Alain street Neighborhoods
Subarea; and Approving a Legally Binding Agreement for a Homeless
Accommodation at the North Housing Parcel (LBA); and Approve a Housing
Authority Board of commissioners Resolution Approving a LBA and Related
Memorandum of Understanding.
Elizabeth Cook, Housing Development Manager, gave a presentation which was an
overview of the North Housing Parcel project.
Liz Varela, Executive Director, Building Futures for Women and Children (BFWC),
stated that they are excited about the project, as it's a great opportunity for their clients
to make change in a safe, stable housing, with support. Doug Biggs, Executive
Director, Alameda Point Collaborative, commented on a few points, stating that the
process has resulted in a really strong plan, and that all partners carne together to
create a solid program which drags on the strengths of each provider, the Housing
Authority (HA) and BW C. He's excited that this plan will permanently end
homelessness. He reminded the hoard that the Homeless Needs Assessment was
done a year ago, March 2008, and today, the needs for the homeless is even greater.
He addressed a couple of issues discussed in the presentation, including the site plan.
He commented that the drawing is only a small portion of entire site, and that the
general plan principles are met: housing is closer to the Tinker Ave. transit corridor,
which makes for easy access to transportation and schools. Regarding the
environmental clean up, Mr. Biggs stated that they are constrained by the ROD (Record
of Decision), which limits the Navy's culpability. He discussed that in the worse case to
comply with ROD, the HA came up with a plan built into the funding mix, as well as a
plan which is part of the service plan to set aside money for insurance. He assured the
Board that the project was made to be as risk averse as much as possible
Member Matarrese stated a few modifications to the recommendation, including making
sure the eight acres stay contiguous, and that the Miracle League is specified within the
eight acres; that language is worked into the LBA that addresses if the remediation
insurance is cross prohibitive, we don't have to take title. Chair Johnson added the
provision that outside counsel, or counsel, should make any changes necessary to
ensure additional safeguards. Donna Mooney, ARRA General Counsel, summarized
that this is an ARRA motion approving the resolution (the addendum to final EIR),
amending the Community Reuse Plan, and approving the LBA as modified. The
motion was made by Chair Johnson, seconded by Member Matarrese and passed
by the following voice votes: Ayes 6, Noes 6, Abstentions U.
As the HABOC, the recommendation was to approve the resolution approving the vIOU
between the Housing Authority, Alameda Point Collaborative, and Building Futures for
Women and Children; and approving the LBA as modified. The motion was made by
Commissioner Torrey, seconded by Commissioner Matarrese, and passed by the
following voice votes: Ayes 6, Noes 0, Abstentions On
4. 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.)
M
6. COMMUNICATIONS FROM THE GOVERNING BODY
None.
6. ADJOURNMENT ARRA, IHABOC
Meeting was adjourned at 11 :50 p.m. by Cliair Johnson.
Respectfully submitted,
Irma Glidden
ARRA Secretary
From: David Brandt
Actin Executive Director
Date: April 1, 2009
Re: Authorize Ne and Execution of a Sublease Renewal for
Anti b the Ba Buildin 13, at Alameda Point
BACKGROUND
The Alameda Reuse and Redevelopment Authorit ARRA) g overnin g Board approves
all Alameda Point subleases with a lease term g reater than one y ear. The proposed
sublease for Anti b the Ba is for two y ears.
DISCUSSION
Anti b the Ba has occupied a portion of Buildin 13 at Alameda Point for the past
four y ears. This buildin is used as office space in support of the monthl Anti Faire.
Attachment A describes the business terms for the proposed sublease for Anti b
the Ba in a portion of Buildin 13. The rent for Anti b the Ba is $29,424
annuall or $0.6130 per s ft. in the first y ear. There is a 3% increase in each
subse y ear. The buildin will continue to be used for g eneral office space. Buildin
13 is in poor condition.
t
In accordance with the Exclusive Ne A between the ARRA and
SunCal Companies, this lease has been discussed with representatives from SunCal
Companies and has their concurrence.
BUDGET CONSIDERATION FINANCIAL: IMPACT
This lease will g enerate $29,424 in the first y ear. These funds will be retained b the
ARRA.
RECOMMENDATION
Authorize ne and execution of a sublease for Anti b the Ba at Alameda
Point.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authorit
Respectfull submitted,
Leslie Little
Development Services Director
B
Nanette Banks Mocanu
Finance and Administration Mana
April 1, 2009
Pa 2
Attachment: A. Proposed Sublease Business Terms
B. Site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT BUILDING SIZE SF TERM RENT
Antiaues by the Bav 13 4 2 yrs $2,452/mo.
TTACHMENT
From: David Brandt
Acting Executive Director
Date: April 1, 2009
Re: Authorize Negotiation and Execution of a Sublease Renewal for Antiques by
the Bay, Building 459, at Alameda Point
.BACKGROUND
The Alameda Reuse and Redevelopment Authority (ARRA) governing Board approves
all Alameda Point subleases with a lease term greater than one year. The proposed
sublease for Antiques by the Bay is for two years.
DISCUSSION
Antiques by the Bay has occupied Building 459 at Alameda Point for the past two years.
This building is used to do light maintenance on the tugs and trailers used to set up the
field for the monthly Antique Faire. This building also is used to perform maintenance of
the various tables, booths and other wooden pieces at the Antiques Faire.
Attachment A describes the business terms for the proposed sublease for Antiques by
the Bay in Building 459. The rent for Antiques by the Bay is $41,484 annually, or
$0,3008 per sq. ft. in the first year. There is a 3% increase in each subsequent year.
The building will continue to be used for light vehicle maintenance, shop space and
parking. Building 459 is in poor condition.
In accordance with the Exclusive Negotiating Agreement between the ARRA and
SunCal Companies, this lease has been discussed with representatives from SunCal
Companies and has their concurrence.
BUDGET CONSIDERATION /FINANCIAL IMPACT
This lease will generate $41,484 in the first year. These funds will be retained by the
ARRA.
RECOMMENDATION
Authorize negotiation and execution of a sublease for Antiques by the Bay at Alameda
Point.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
Respecfy submitted,
Leslie Little
Development services Director
By:
Nanette Banks Mocanu
Finance and Administration Manager
April 1, 2009
Page 2
Attachment: A. Proposed Sublease Business Terms
B. site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT
BUIL
SIZE SF
TERM
RENT
Antiques b the Ba
459
1 ,493
2 yrs
$3,457/mo.
'TACHMENT B
From: David Brandt
Actin Executive Director
Date: April 1 a 2009
Re: Authorize Ne and Execution of a Sublease Renewal for Ba
Ship Yacht Compan at Alameda Point
The Alameda Reuse and Redevelopment Authorit ARRA) g overnin g Board approves
all Alameda Point subleases with a lease term g reater than one y ear. The proposed
sublease for Ba Ship Yacht Compan is for two y ears.
DISCUSSION
Ba Ship Yacht Compan has occupied Buildin 400A at Alameda Point for the past
four y ears. This buildin is used for ship buildin and restoration of wooden ships and
boats.
Attachment A describes the business terms for the proposed sublease for Ba Ship
Yacht Compan in Buildin 400A. The rent for Ba Ship Yacht Compan is $234,000
annuall or $0.30 per s ft,. in the first y ear. There is a 3% increase in each
subse y ear. The buildin will continue to be used ship buildin and restoration.
Buildin 400A is in fair condition.
In accordance with the Exclusive Ne A between the ARRA and
SunCal Companies, this lease has been discussed with representatives from SunCal
Companies and has their concurrence.
BUDGET CONSIDERATION /FINANCIAL IMPACT
This lease will g enerate $234,000 in the first y ear. These funds will be retained b the
ARRA.
RECOMMENDATION
Authorize Ne and Execution of a` sublease for Ba Ship Yacht Compan at
Alameda Point.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authorit
Respect ubmitted,
ect ufIl
Lesfie Little
Development Services Director
B
Nanette Banks Mocanu
Finance and Administration Mana
April 1, 2009
Pa 2
Attachment: A. Proposed Sublease Business Terms
B. Site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT
BUILDING
SIZE SF
TERM
RENT
Bay Ship Yacht
Compan
400A
65,000
2 yrs
$19,500/ma.
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From: David Brandt
Actin Executive Director
Date: April 1, 2009
Re: Authorize Ne and Execution of a Sublease for Dre Capital
Partners, Buildin at Alameda Point
The Alameda Reuse and Redevelopment Authorit ARRA) g overnin g Board approves
all Alameda Point subleases with a lease term g reater than one y ear. The proposed
sublease for Dre Capital Partners is for three y ears.
DISCUSSION
Dre Capital Partners formerl occupied Buildin 113 at Alameda Point. In Februar
2008, the Nav informed the ARRA that the would be conductin screenin and testin
in four buildin at Alameda Point and that those buildin are re to be empt for
these tests. Buildin 113 was one of those buildin
Attachment A describes the business terms for the proposed sublease for Dre
Capital Partners in a portion of Buildin 29. The rent for Dre Capital Partners is
$29,184 annuall or $0.30 per s ft. in the first y ear. There is a 3% increase each
subse y ear. The buildin will continue to be used for li manufacturin
fabrication, and g eneral office. Additionall Dre Capital Partners has asked for a
Ri of First Offer (ROFO) for the remainin space in Buildin 29. This will g ive
Dre Capital Partners the abilit to 'meet or exceed an offer the ARRA would
receive to lease the remainin 8,703 s feet of Buildin 29. If Dre Capital
Partners does not respond to the offer presented to them, the ARRA would lease the
remainin space to whoever provided a viable offer to lease the remainin space.
Buildin 29 is in g ood condition.
In accordance with the Exclusive Ne A between the ARRA and
SunCal Companies, this lease has been discussed with representatives from SunCal
Companies and has their concurrence.
BUDGET CONSIDERATION FINANCIAL IMPACT
This lease will g enerate $29,184 in the first y ear. These funds will be retained b the
ARRA.
Honorable chair and Members of the April 1, 2009
Alameda Reuse and Redevelopment Authority Page 2
RECOMMENDATION
Authorize negotiation and execution of cli sublease for Dreyfuss capital Partners at
Alameda Point.
Res p ctfully submitted I
Leslie L`
Develor
me
Nanette Banks Mocanu
Finance and Administration Manager
Attachment: A. Proposed sublease Business Terms
B. site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT
BUILDING
SIZE (SF
TERM
RENT
[ire fuss Capital
Partners
29
8
3 yrs
$2,432/mo.
ATTACHMENT B
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From: David Brandt
Actin Executive Director
Date: April 1, 2009
Re: Authorize Ne and Execution of a Sublease Renewal for
Dre Capital Partners, Han g a_rl 22, at Alameda Point
.BACKGROUND
The Alameda Reuse and Redevelopment Authorit ARRA) g overnin g Board approves
all Alameda Point subleases with a lease term g reater than one y ear. The proposed
sublease for Dre Capital Partners is for five y ears, with a five y ear option to
extend.
DISCUSSION
Dre Capital Partners has occupied Han 22 at Alameda Point for the past three
y ears as a subtenant to Creative Technolo Creative Technolo has decided not
to exercise their option to extend in the buildin and will vacate at the termination of the
current lease. In terminatin their lease, Creative Technolo also relin their
purchase option contained in their ori lease. Dre Capital Partners has asked
to lease Han 22 in its entiret The buildin is used for non-destructive testin
includin the use of x-ra e fabrication, li manufacturin and g eneral office.
Attachment A describes the business terms for the proposed sublease for Dre
Capital Partners in Han 22. The rent for Dre Capital Partners is $273,000
annuall or $0.35 per s ft. in the first y ear. There is a 3% increase in each
subse y ear. The buildin will continue to be used for non-destructive testin
includin the use of x-ra e fabrication, li manufacturin and g eneral office.
Han 22 is in fair condition.
In accordance with the Exclusive Ne A between the ARRA and
SunCal Companies, this lease has been discussed with representatives from SunCal
Companies and has their concurrence.
BUDGET CONSIDERATION /FINANCIAL IMPACT
This lease will g enerate $273,000 in the first y ear. These funds will be retained b the
ARRA.
Honorable Chair and Members of the April 1 2009
Alameda Reuse and Redevelopment Authority Page 2
RECOMMENDATION
Authorize negotiation and execution of a sublease for Dreyfuss Capital Partners at
Alameda Point.
Reupe fully submitted,
teslie Little
Development services Director
Nanette Banks Mocanu
Finance and Administration Manager
Attachment: A. Proposed sublease Business Terms
B. site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERNS
TENANT BUILDING SIZE SF TERN[ RENT
Dreyfuss Capital 22 55,000 5 yrs 5 yr $22,750/mo.
Partners t option to
extend
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ATTACHMENT B
From David Brandt
Actin Executive Director
Date: April 1, 2009
Re: Approve a Waiver of License Fees for Pacific Sk Council, BSA Sea
Scouts, Ancient Mariner Re
NM 6TVIVjK#
For the past several y ears, Pacific Sk Council, BSA Sea Scouts, Ancient Mariner
Re (Sea Scouts) has utilized space at Enterprise Park for their annual re held
durin Memorial Da weekend.
DISCUSSION
The Sea Scouts re make a re for the use of Enterprise Park and fee
waivers. The plan to use the park for six da for set-up, Ma 16 21, four da for the
event, Ma 22 25, and three da for tear-down, Ma 26 28. The are seekin
approval of fee waiver for this event. The Sea Scouts will be re to provide
insurance and compl with all re for use of Enterprise Park at Alameda Point.
BUDGET CONSIDERATION FINANCIAL IMPACT
The license fee for this t of event is $1 per da for set-up and tear-down, and
$2,000 per da for event da The total fee that is bein re for waiver is
$173000.
,RECOMMENDATION
Approve the waiver of the license fees for the Pacific Sk Council, BSA Sea Scouts,
Ancient Mariner Re
Respect. all submitted,
ter:
s e
Development Services Director
Honorable Clair and April 1, 2009
Members of the Alameda Reuse and Redevelopment Authority Page 2 of 2
By:
V V
Nanette Banks Mocanu
Finance and Administration Manager
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ATTACHMENT B
3 -A
Item 3 -A is an oral report and Powerpoint presentation
of Treasure Island Redevelopment
by Jack Sylvan, San Francisco Mayor's office
From: David Brandt
Acting Executive Director
Date: April 1, 2009
Re: Alameda Point Update
BACKGROUND
Pursuant to the Exclusive Negotiation Agreement (ENA) between SCC Alameda Point,
LLC (SunCal), the city, Community Improvement Commission (CIC) and Alameda
Reuse and Redevelopment Authority (ARRA), SunCal has a number of mandatory
performance milestones. On December 19, 2008, Suncal submitted its draft master
plan that it presented to the ARRA Board on January 7, 2009. On March 4, 2009, staff
provided a summary of the joint project pro forma to the ARRA. SunCal's next
mandatory milestone is a ballot initiative determination. By April 30, 2409, Suncal must
submit a written election to either submit an Entitlement Application or pursue a ballot
initiative.
DISCUSSION
Over the past 80 days, Suncal has been preparing the documents that will comprise its
ballot initiative, including a Community Flan, Specific Plan and Development Agreement
(DA). The ballot initiative was submitted to the city clerk's office on March 28, with a
request that the City Attorney's office prepare a ballot title and summary. By law, the
City Attorney's office has 15 days to prepare the title and summary. Following
preparation of the ballot title and summary, Suncal must publish a Notice of Intention
and the title and summary of the proposed measure in a newspaper of general
circulation. Once the notice has been published, Suncal can begin gathering
signatures to place the measure on the November 2009 ballot. Signature gathering
must be completed by June 15, 2009, and the city Council must act to place the
measure on the ballot, so long as a sufficient number of valid signatures have been
obtained, by August 7, 2009. Suncal will present its Specific Plan and summary of the
DA, and provide an update on the initiative process, at the ARRA's May 8, 2009
meeting,
In addition to the work Suncal has been engaged in regarding the ballot initiative, staff
and Suncal continue to update the fiscal neutrality analysis and project pro forma in
Honorable Chair and April 1, 2009
Members of the Alameda Reuse and Redevelopment Authority Page 2 of 2
preparation for a possible conditional Acquisition Agreement. As requested, the Navy
provided an initial response to the project pro forma on March 15. The Navy has
requested that the ARRA consider an alternative valuation proposal for establishing a
land sale price. staff and Suncal are analyzing the Navy's proposal and expect to
respond to the Navy in the next several weeks.
Pursuant to the ENA, Suncal is obligated to deposit $250,000 with the city to
commence California Environmental Quality Act (CEQA) analysis of the project by April
30, 2009. The resulting Environmental Impact Report (EIR) will be considered, along
with the Disposition and Development Agreement (DDA), by July 20, 2010. Staff
anticipates requesting ARRA approval of an award of contract for preparation of the EIR
at the A R RA's May 5 meeting.
FINANCIAL IMPACT
There is no financial impact from receiving this Alameda Point update.
RECOMMENDATION
This report is for information only. No action is required.
Respectfully submitted,
L s I I
Development services Director
By:
Debbie Potter
Base Reuse and Community Development Manager
Ice
From: David Brandt
Actin Executive Director
Date: April 1, 2009
Re: Alameda Point Environmental Issues Update: Radiolo Substance at
West Shore of Seaplane La and Block of Oversize Debris at North
Shore of Seaplane La
BACKGROUND
The Nav recentl made two unexpected discoveries at Alameda Point, both in or near
Seaplane La First, a radiolo substance was discovered immediatel behind
the western riprap wall of Seaplane La Second, a lar submer block of
oversized debris was found near Seaplane La north shore. This staff report
discusses both of these recent discoveries.
DISCUSSION
Radiological Substance at the West Shore of Seaplane Lagoon
On Februar 10, 2009, the Nav unexpectedl discovered an area of radiolo
contamination that appears to be about ten feet b five feet in size. The anomalous area
is located in an area of ice plant, immediatel west of Seaplane La riprap wall,
about 280 feet south of the northwest corner of Seaplane La and about 35 feet
south of Stormwater Outfall F. The Nav initial observation of the substance cites a
hard and brittle white substance with shades of purple streaked throu it. The chalk-
like substance's radioactivit is due to radium 226. The ori of the substance and its
extent are both unknown. Perhaps si Stormwater Outfall F, which is near the
substance, serves a storm drain line that is radiolo contaminated because it
historicall dischar from radium paint shops in I Sites 5 and 10. The Nav has
su that the substance mi be radium paint waste.
To date, the Nav has taken several actions as a result of discoverin the substance:
A sample of the substance was collected for further stud
The area of the substance was fenced and warnin si posted;
Honorable Chair and April 1, 2009
Members of the Alameda Reuse and Redevelopment Authorit Pa 2 of 4
On March 4, 2009, the Nav performed a preliminar health and safet
radiolo scan alon the entire western bank of Seaplane La and
The Nav decided to scan radiolo all lar sized concrete debris that is
bein excavated from the debris piles alon the north shore of Seaplane La
before shippin the debris to a concrete rec
At the March 17, 2009 Base Reali and Closure (BRAG) Clean—up Team (BCT)
meetin the Nav discussed its plans for removin the radiolo substance. Within
two weeks, the Nav expects to have modified an existin contract to include removal.
That contract, for a time-critical removal action (TCRA) for the storm drain leadin from
radium paint shops in IR Sites 5 and 10 to Stormwater Outfall F, involves man of the
same issues as does removal of the substance. Within two months, the Nav expects to
have prepared a work plan for review b the BCT.
Preliminaril the substance removal will include the followin components:
0 Remove riprap from the location of the substance northward to Stormwater
Outfall F about 35 feet and for a similar distance south. Riprap will be removed
down to the level of hi hi tide.
0 Scan the exposed area for radiolo contamination.
0 Excavate an radiolo contamination encountered.
0 Anal samples of the material and of soil for chemical contaminants. The
anal results will be useful for informin offsite disposal decisions. The ma
also help with understandin what the material is and wh it is present at this
location.
Further review Alameda Point records for information relevant to the radiolo
substance.
The removal action does not extend into Seaplane La or into g roundwater, even if
radiolo contamination is observed to reach into those areas. This limitation is
desi to prevent unintended spreadin of the contamination into water. If
radiolo contamination appears to extend below the level of g roundwater or into
Seaplane La a subse more detailed work plan will be prepared for its
removal.
The unexpected discover of the radiolo material raises the q uestion of whether
other such anomalies ma be present at Alameda Point. The Nav completed a
basewide historical radiolo assessment that should have identified all locations at
Alameda Point where radiolo contamination mi be present. However, the
assessment's report does not indicate that the location of the radiolo substance has
the potential for radiolo contamination. Because the assessment relies heavil on
historical documents, it mainl identifies locations that were authorized for use, stora
handlin and disposal of radiolo materials. This radiolo substance ma be the
result of unauthorized disposal, which likel would not have been noted in historical
documents.
Honorable Chair and April 1, 2009
Members of the Alameda Reuse and Redevelopment Authorit Pa 3 of 4
It ma be appropriate to scan the entiret of Alameda Point for radiolo
contamination, a course that several environmental re and RAB members have
su The Nav should make a determination about whether other areas of
Alameda Point should be scanned after the Nav has completed its near-term
substance removal action. The removal action ma reveal valuable information that
bears on the likelihood that other such incidents are present at Alameda Point. For
example, if the substance's radioactivel contaminated material is shown to be
sediment from a storm drain line, then it is probable that the contamination is associated
with maintenance of Stormwater Outfall F. In that case, similar anomalies ma be
present near other outfalls, particularl outfalls for storm drain lines that serve areas
where radiolo materials were used, stored, handled, or disposed. Other areas
would not be suspect if the are remote from storm drain lines and outfalls downstream
of former radiolo materials handlin areas. Unless the Nav develops information
to support a conceptual model that rules out certain areas as potentiall containin
radiolo materials, then the Nav should conduct a radiolo scan of the entire
base.
Block of Oversized Debris at the North Shore of Seaplane Lagoon
While conductin a TCRA to remove debris piles alon the north shore of Seaplane
La the Nav unexpectedl encountered a lar submer block. The block
appears to be made of concrete, with perhaps some wood. It is located about 80 feet
from the shore and about 40 feet west of Seaplane La Ramp 2. The block is
about 15 feet b 15 feet b 15 feet in size and, if it is solid concrete, wei about 250
tons. The Nav has no information about the block, such as, what it was used for, where
it came from, wh it is present in the debris-pile area, whether it is hollow, what it is
made of, and whether it contains hazardous materials. The Nav has not y et decided
whether to remove the block. Nav environmental restoration funds g enerall y can be
used onl to clean up contamination and safet hazards. Because so little is known
about the block, it is unclear whether it represents a safet hazard or is contaminated.
The Nav plans to investi the block before decidin whether to remove it. The block
appears not to represent an imminent hazard, so decisions about whether it must be
removed will be determined after the Nav has investi it further.
FINANCIAL IMPACT
This report has no financial impact.
RECOMMENDATION
Direct staff to send the attached letter to the Nav expressin the ARRA I s concern
re the recentl discovered radiolo material at Seaplane La and the
block of oversized debris.
Honorable Chair and April 1, 2009
Members of the Alameda Reuse and Redevelopment Authorit Pa 4 of 4
Respectfull s ttte
tf u"y s
Leslie Little
Development Services Director
/eb bUi e Potter
Base Reuse and Communit Development Mana
ME
Attachment:
1. Draft letter to the Navy
ATTACHMENT l
Ap 12 2009
George Patrick Brooks
BRAC Environmental Coordinator
BRAC PMO west
1455 Frazee Road, S uite 900
San Diego, CA 92108 -4310
Re: Radiological Anoni.al.y at Nest Shore of Seaplane Lagoon and versize Debris at
North Shore of Seaplane Lagoon., A.larneda Point, Alameda, CalifornM
Deai Mi
Brooks:
n Auth� Boa 1. d
At its April 1 n�eeti ng, the Alameda Reuse and Re opine t ARRA
r made: a
u `t'` dr sG Vet e s the Nav &e:nt
directed staff to noti try the Navy o f its co ncern about y
r ar e s ;l bmer e block. at the
radiological. material at the west shore of Seaplane �on and g g
r: r: r r T c a s e
north shore old Se Lag oon. Both of these dis cover :ern offont questions. In the case
g p
of the ra d i olog i cal. i cal. mates ial. anomaly, serious im �l i.cati i the rest of Alameda Point also
g
arise,
Zadioloi-lical Material ,ono iia
Oversize. Debris
The presence of a large, submerged block in Seaplane Lagoon is incompatible with, and presents
a safety hazard to, the planned reuse as a marina. This incompatibility is even greater if the block
is contaminated. we understand the Navy plans to investigate the block further- before deciding
about whether and how to remove it. Please include Dr. Russell in the investigation process and
the subsequent removal decisionmaking. The ARRA believes that the block -'s composition and
w Tether It is hollow are vital. factors in deciding the block's disposition. Of course if the bloc k is
11 of l ow 3 its contents, if any, must be investigated, as well.
Thank you i�or your prompt attention to both of these issues.
SIncerely,
David Brandt
Acting Executive Director
cc: Ai- na- Marl e Cool, U.S. EPA
Dot Lofstrom, D`T`SC
John. west, water Board
Alameda .Point R.AB
Russell Resources, Inc.
environmental management
Alameda Point RAB Meeting on March 5, 2009
Highlights and Analysis
Item 4 -A
RAB members p sent: Dale Smith (Community Co- chair), Fred Hoffman, George Humphreys,
Joan Konrad, Jim Leach, Kurt Peterson, Jean Sweeney, Jinn Sweeney, and Michael John Torrey
Rern.ediation and other field work in progress.
Although Mr. Pat Brooks, the RAB Navy Co- chair, did not discuss fieldwork at the RAB
meeting, the following fieldwork. activities are in progress:
o Debris pile removal along north shore of Seaplane Lagoon continuing removal. of
piles I and 2 complete. Additional debris has been identified between piles I and 2. This
material is being removed as an. additional component of the cleanup, in the sane fashion
as the two o:iginai. piles. The excavated debris pile material. is to be hauled off site for
disposal..
o Replacement of storm drain lines that are contaminated by hi.stori c discharges from.
radium paint shops at IR Sites 5 and 10 is about 50 percent complete.
o Remediation of groundwater petroleum contamination near the Atlantic Avenue entrance
is continuing.
o Groundwater treatment at IR Site 5 to remove solvent (Plume 5 -3) using 6 -phase heating
is nearing completion.
o The petroleum remediation system at the southern end of the western hangar row is
continuing to extract much more jet fuel than. was originally expected.
o The air spargelvapor extraction system to treat groundwater contaminated with benzene
and naphthalene at Alameda Point off -5 and FISCA IR Site 2 is starting up.
IR. Site 2 Western Han ar Zone Groundwater Treatment
The Navy i.s treating a relatively small plume of solvent contaminated groundwater USi.ng in situ
chemical oxidation (ISCO). This treatment process involves injecting treatment chemicals into
the groundwater plume to chemically destroy the solvent contamination. The Navy's initial.
attempt using ISCO to clean up the plume was largely unsuccessful part because unexpected
petroleum contamination was encountered. The Navy is now repeating the ISCO process, but
with a different treatment chemical and a modified way of injecting the treatment chemicals into
the plume. This second injection event has just been completed and the Navy is giving the
injected chemicals time to react with the solvent contamination. before collecting groundwater
samples to evaluate whether residual contamination remains. In late February, the RAB held a
technical session that provided an in -depth discussion of ISCO remediation of this site. The
Navy drew upon RAB members' suggestions in modifying the ISCO process for the second
round of injections.
RR1, 440 Nova Albion May, Suite 1, San Rafael, California 94903 415.902.3123 fax 815.572.8600
Page 2 of 2 Alameda Point RAB Meeting, March5, 2009
April 1, 2009 Highlights and analysis
Removal. of Debris Piles along the North Shore of Seaplane La oon.
The Navy updated the RAB about the ti.rne- critical removal action (TCRA) to remove the debris
piles along the north shore of Seaplane Lagoon. Excavation of the two debris piles that were
originally targeted by the TCRA is complete.
Third Debris Pile
During the removal of these debris piles, the Navy encountered another, smaller debris pile
between the original two piles. The Navy estimates the size of the third pile to be 1,500 cubic
yards. Removal. of this pile will. take a few months, depending on contracting issues.
Rydioio giccd Scynning o Concrete to be Recycled
Oversize chunks of concrete in the debris excavated from the Seaplane Lagoon are to be sent to a
concrete recycler. Considerable discussion occurred about testing the oversize concrete for
contamination before it is sent to the recycles. Currently, the Navy plans testing for chemical
contamination only, but several RAB members urged the Navy to test for radiological
contamination. too. At the RAB meeting, the Davy maintains there is no basis for expecting the
oversize concrete to be radi.ological.l y contaminated. However, subsequent to the RAB meeting,
the Navy is agreeing to conduct the radiological. testing, based on discussions with environmental.
regulators and the recent, unexpected discovery of radiological. contamination. near the wester
shore of the Seaplane Lagoon. (Further discussion of this issue appears below.) To date, none of
the oversize concrete debris has been shipped to the recycles. Soil, sediment, and smaller debris,
which is shipped offsite for disposal in landfills, is scanned upon arrival at the landfill. No
detections of radiological contamination at landfills have been reported.
S ubnie.Lged Block
T RAB briefly discussed a large block of oversize debris that the Navy encountered while
excavating debris pile 1. The item appears to be a 15 -foot by 15 -foot by 15 -foot block of
concrete, which potentially has wood components. If the block is solid concrete, it would weigh
about 250 tons. The block is about 80 feet offshore and about 40 feet west of Seaplane Lagoon's
Ramp 2. The top of the block is submerged even at lower low tide. The Navy did not explain
what the block might be, how it came to be in the Seaplane Lagoon., and whether: the Navy will
remove it. This block of oversize debris is discussed further in. an accompanying staff report to
the ARRA Board.
Radiola ical Anomaly near Vest Shore of Seaplane Lagoon
The Navy briefed the RAB about its unexpected discovery of radiological contamination in soil.
immediately west of the western riprap wall. of Seaplane Lagoon. The anomaly is located about
280 feet south of the northwest corner of Seaplane Lagoon and about 35 feet south of
Stormwater outfall F. Storrnwater outfall F serves the storm drain line that is the subject of a
Navy TCRA due to contamination by historic discharges from radium paint shops at IR Sites 5
and 10. The Navy has secured the area of the anomaly and plans to remove it as expeditiously as
possible. Several RAB members urged the Navy to radiologically scan all of Alameda Point to
evaluate whether other such unknown anomalies are present. This issue, too, is discussed further
in a staff report to the ARRA Board.
440 Nova Albion Way, Suite 1, San Rafael, California 94903 415.902.3123 fax 8. 5.572.8500