2001-12-10 ARRA MinutesAPPROVED
MINUTES OF THE SPECIAL MEETING OF THE 2-A_
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Monday December 10, 2001
The meeting convened at 5:15 p.m. with Chair Appezzato presiding.
1. ROLL CALL
Present: Ralph Appezzato, Mayor, City of Alameda, Chair
Albert DeWitt, Boardmember, City of Alameda
Barbara Kerr, Boardmember, City of Alameda
Tony Daysog, Boardmember, City of Alameda
Absent: Beverly Johnson, Boardmember, City of Alameda
2. CONSENT CALENDAR
2 -A. Approval of the minutes of the regular meeting of September 5, 2001.
2 -B. Approval of the minutes of the special meeting of November 13, 2001.
Member Daysog moved approval of the Consent Calendar. The motion was
seconded by Member DeWitt and passed by the following voice vote: Ayes -4;
Noes -0; Abstentions -0.
3. ACTION ITEMS
3 -A. Recommendation from the Development Services Director to approve Legally
Binding Agreement with Alameda Pont Collaborative Provider and authorize the
Executive Director to execute individual LBA's with residential providers, and
authorize the Executive Director to administratively approve a Management Plan
for non - residential uses, and to execute individual LBA's with non - residential
Providers thereafter.
There public hearing was opened.
Jack Shepherd, Alameda Point Collaborative (APC) thanked staff for working with the
Collaborative and completing the Legally Binding Agreement (LBA) in a timely manner.
Mr. Shepherd stated that APC has been working with short term leases, while their
funding has required long term leases. APC hopes that the Governing Board will
approve the LBA, as this will allow APC to secure large amounts of funding.
The public hearing was closed for Authority discussion.
Member DeWitt asked if APC is still attempting to secure some grant funds?
Mr. Shepherd responded yes, they are and they need the LBA approved to further
secure these funds for long term projects. The deadline is December 17, 2001.
Member Daysog asked if APC is working on specific agreements that will require that
the LBA is approved prior to December 17?
Mr. Shepherd responded yes, the LBA needs to approved, as they are applying for a $1
million grant, which is due by December 17 and would provide operating subsidies for
the next 15 years. Mr. Shepherd further stated that they are applying for a $500,000
Fannie Mae grant, which is due by January 11.
Member Daysog moved approval of the recommendation. The motion was
seconded by Member DeWitt and passed by the following voice vote: Ayes -3;
Noes -1 (Member Kerr); Abstentions -0.
Discussion.
Member Kerr stated the uses defined in the LBA were very broad and would give the
Executive Director authority to approve the uses with the individual LBA's for the non-
residential uses and the leases are currently running for 59 years. Member Kerr stated
that all individual uses are supposed to come to the Governing Board that are 7 -15
years. The LBA provides for these uses to be good for the next 59 years and the
circumstances could change over that amount of time. Member Kerr recommended
that the motion be amended so that any LBA for non - residential use come to the ARRA
Governing Board before it is assigned.
Member DeWitt asked for further clarification from the Attorney Terri Highsmith.
Assistant City Attorney Terri Highsmith stated that Member Kerr requested that the
motion be amended to delete the direction given to the Executive Director to be able to
execute the individual leases after the use paragraphs are created. The uses of all of
these properties have long been established by the Community Reuse Plan and the
Standards of Reasonableness. Technically, there is no discretion by either the ARRA
or APC to change the uses. Attorney Highsmith further stated that a more specific
version of the use paragraphs have not yet been created, thereby giving the ARRA the
ability to require that each LBA come back to the ARRA for approval when the use
paragraphs have been created. Staff recommendation is to give the Executive Director
the administrative ability to execute the individual LBA's, as long as they are consistent
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with the prior approved Community Reuse Plan and Standards of Reasonableness
uses.
Chair Appezzato asked if the Executive Director is the City Manager and if APC went
outside of the previously approved uses, would they have to get approval from the
Executive Director?
Attorney Highsmith responded that is correct and APC has no ability to go outside of
the previously approves uses. If they did want a change of use, they would have to
come before the ARRA Board to request that.
Member Kerr stated that unlike the residential uses, the non - residential uses are
extremely broad. Some of the non - residential uses are going to be near housing or
quiet uses and it would be prudent to have these uses established prior to approval.
Member DeWitt asked if once these uses are approved, will it be for the full 59 years?
Attorney Highsmith responded that is correct. The terms that the ARRA Board
approves will apply to both residential and non - residential. The only thing that is not
before the Board are the use paragraphs.
Member DeWitt stated that he is concerned that over the next 59 years the City
Manager has the authority to authorize any changes that may occur.
Attorney Highsmith responded that the Executive Director /City Manager does not have
the authority to make any changes to the form of the agreement or any changes to the
use paragraph. The ARRA Board is being requested to approve the way the LBA's will
always look, unless someone wants to make a substantive change to it and then it
would require ARRA Board approval. If the ARRA Board approves giving the Executive
Director the administrative authority to execute the LBA's, it is not giving him any
discretion, only the administrative task of signing each one as soon as the use
paragraphs have been completed. Staff recommended this direction, because they
believe the ARRA Board has seen these use paragraphs and they are consistent with
what is in the Community Reuse Plan and the former form of the Legally Binding
Agreement and Standards of Reasonableness.
Member DeWitt stated his understanding is that they are also giving the Executive
Director the authority to work out any changes to the LBA that may occur.
Attorney Highsmith stated that any changes anyone desires to make would have to
come back to the ARRA. The document before the Board tonight is consistent with
what it has seen before, the only thing that is missing are the individual uses for the
non - residential units. This information will be filled in later for the eleven LBA's. The
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Board has the option to have the eleven come back for individual approval once the
uses are defined.
Chair Appezzato stated that the Charter calls for a strong City Manager form of
government. Although the ARRA (City Council) oversees it and sets the policies, it is
giving him the authority to act administratively and can always be brought back to the
ARRA (City Council) if it is necessary. Mayor Appezzato further stated he has a high
regard for whom they select to the job of City Manager and is prepared to vote in favor
of the original recommendation.
Member Kerr stated that this would be in effect for 59 years and there will be different
City Manager's over that time period. Member Kerr stated that she is concerned,
because the use paragraphs do not exist and therefore the ARRA Board is being asked
to authorize an incomplete document.
Chair Appezzato stated that if the City Council does not like the way the City Manager
does business, they can fire him. The City Manager should act according to the
policies that have already been established before him.
Member Kerr stated that once things are handled in the administrative phase, it never
comes back to the elected Body, therefore it may not ever be known what is being
done.
Member DeWitt stated that this appears to be the most efficient way to handle the
LBA's. The Board has the ability to request any information or data they want and if
they do not comply with these requests, they can fire him.
Member Kerr stated that the Board should be able to see the management plan or
individual uses as they are written.
Chair Appezzato responded that the Board can review it and all they have to do is
request that it be agendized for a meeting.
Member Daysog stated that the amended LBA is critical to moving those who are
homeless into housing, which is part of military base conversion. People who are the
most disadvantaged are put on the track of self sufficiency and independence. The
Board is laying down the frame work and the parameters of which are known through
the Board's prior work. Member Daysog further stated that he likes the way the motion
stands and would like to move forward.
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Member Kerr stated that the government may take back the property in the event of a
national emergency, as declared by the President of the United States. Since
September 11, it could potentially happen and asked what effect that may have on the
leases?
Attorney Highsmith responded that the Federal Government has the power to do that
during the terms of the Lease in Furtherance of Conveyance ( LIFOC). Once they have
conveyed the property and fee to the City, then that would not happen. Every lease at
Alameda Point only exists subject to the LIFOC and that is a provision in all of the
leases, including the Legally Binding Agreements.
Member Kerr asked how did the Alameda Point Collaborative feel about this provision?
Mr. Shepherd responded that when they met with the State and other lenders, they
were all willing to accept the remote possibility that the Federal Government would
actually take the property back in the event of a national emergency.
3 -B. Report and recommendation from the Development Services Director regarding the
APAC's recommendation to retain the Admiral's House for cultural and civic uses, and
recommendation to undertake a Business Plan to study feasibility.
There were no public speakers.
The public hearing was closed for Authority discussion.
Member Kerr stated that it was understood that APAC, as an Advisory Board to the ARRA,
would not work through other Boards or Commissions and this went through the Park and
Recreation Commission first. Member Kerr stated that the Park and Recreation Commission had
extensive discussions regarding the Admiral's House and are aware of the building problems,
including a leaking roof and the kitchen which cannot be used, as it could cost up $500,000 to
renovate. Member Kerr recommended that the Admiral's House be sold as a single family house,
with the necessary deed restrictions so that the modifications would be controlled from an
historical point of view. Another option would be to turn it into a mini- convention center which
would require a commercial kitchen and additional bathrooms. Member Kerr stated that she is
not prepared to go forward with a Business Plan without the Board considering the alternative
historical preservation advantages of selling it as a single family dwelling with deed restrictions
control.
Chair Appezzato stated he had no problems with the different Boards and Commissions
communicating with one another regarding City concerns. This recommendation is just a vote to
undertake a Business Plan and then decide whether or not to go forward to determine if this
would be viable for the City.
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Member DeWitt moved approval of the recommendation. The motion was
seconded by Member Daysog and passed by the following voice vote: Ayes -3;
Noes -1 (Member Kerr); Abstentions -0.
4. ORAL REPORTS
4 -A. Oral report from APAC.
Chairman Lee Perez stated that the APAC is aware of the ramifications and sensitivities of the
communicating with other Boards and it is not their intent to directly advise another Board or
Commission or to be involved in their business. The APAC has been discussing the use of the
Admiral's for sometime and felt that they should express their desire for a feasibility study. The
APAC is currently working on the General Plan.
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.)
None.
6. COMMUNICATIONS FROM THE GOVERNING BODY
Member Kerr stated that she is concerned about the irregular meetings. It is a mandatory
courtesy to the public to keep with the regular monthly scheduled meetings, because that is when
they know when they are going to meet and where to find them. The last ARRA meeting was
irregularly scheduled and it was held at Alameda Point, City Hall West and no one probably knew
of that meeting or the one for this evening. Staff should handle their work load accordingly to
assure that the public is kept in the loop of all the issues, as well as all Board member
participation.
Chair Appezzato responded Member Kerr's comments are well taken and staff should adhere to
the regularly scheduled ARRA or City Council meetings for time sensitive issues.
7. ADJOURNMENT
Chair Appezzato adjourned the meeting at 7:00 p.m.
Respectfully,
Lucretia Akil
ARRA Secretary
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