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2000-04-05 ARRA MinutesAPPROVED MINUTES OF THE REGULAR MEETING OF THE 2-A_ ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, April 5, 2000 1. SPECIAL SESSION The special session was convened at 5:08 p.m. with Chair Appezzato presiding to address the following item: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Attendees: Chair Appezzato, Member DeWitt, Member Kerr and Member Johnson. Absent: Tony Daysog Chair Appezzato adjourned the special session at 5:35 and convened the regular meeting at 5:55 p.m. He announced the Board had met in special session and that no action was taken. 2. ROLL CALL Present: Chair Ralph Appezzato, Mayor City of Alameda Tony Daysog, Councilmember, City of Alameda Albert DeWitt, Councilmember, City of Alameda Beverly Johnson, Councilmember, City of Alameda Barbara Kerr, Councilmember, City of Alameda 3. CONSENT CALENDAR 3 -A. Approval of the minutes of the regular meeting of the March 1, 2000. 3. B. Recommendation to adopt a resolution authorizing the Deputy City Manager to apply to the California Trade and Commerce Agency for a California Defense Adjustment Matching Grant. 3. C. Recommendation to adopt a resolution authorizing the Deputy City Manager to represent ACET in applying to the California Trade and Commerce Agency for a California Defense Adjustment Matching Grant. 3. D. Report from the Deputy City Manager recommending changing the ARRA fiscal year to correspond to the City's fiscal year. 3 -E. Report from the Deputy City Manager recommending that the ARRA Governing Body - 1 - endorse Senate Bill 2049 (Perata). Member Kerr moved approval of the minutes as presented for the regular meeting of March 1, 2000 and the Consent Calendar. The motion was seconded by Member Johnson and passed by the following voice vote: Ayes - 5; Noes - 0; Abstentions - 0. 4. ACTION ITEMS 4.A. Report and recommendation from the Deputy City Manager regarding adoption of a policy limiting Purchase Options in future sublease agreements. The public hearing was opened. There were no speakers on this item. The public hearing was closed for Authority discussion. Member Johnson moved approval of the recommendation. The motion was seconded by Member Kerr, and passed by the following voice vote: Ayes - 5; Noes - 0; Abstentions - 0. Discussion. Member Daysog thanked Deputy City Manager David Berger for his clear response to questions and concerns raised by residence and councilmembers. 4 -B. Report and Recommendation from the Deputy City Manager requesting authorization for the Executive Director to negotiate and execute a lease of Building 585 with AIA regarding the Home Project for 10 years. Deputy City Manager, David Berger stated this item is a proposed lease for Building 585 to AIA. There are two reasons why this is before the Governing Body this is evening. The first is that the proposed lease term which staff and AIA is requesting, is greater than the seven (7) year limit, which staff has authority to negotiate in interim leases. The second reason is to resolve the basic terms and conditions for the proposed lease. The staff report fully describes what AIA is proposing in the way of lease. AIA's proposal values services and programs that benefit the community, in lieu of most of the rent. There is a net effective rent under their proposal and a participation in revenues that would be generated. Staff believes that it has great merit, but has concluded that in order to balance the competing interest of maximizing revenues, to operate and maintain and protect the property, which the Navy is no longer providing any Caretaker funds, staff felt the balancing of the interest should have been set at a higher level in this proposed lease, which staff has described as the Alternative Proposal in the report. Deputy Berger acknowledged the simplified version, which was passed out to the Board of the proposed rent that would be paid by the HOME Project, under their proposal and the staff recommended alternative. The Board is going to -2- have to decide on the lease term and which of the Alternatives is in the best interest of the community and Alameda Point Reuse and Redevelopment project. Mayor Appezzato asked if the two issues are the lease term, seven or ten years and the difference in the amount of rent? Deputy Berger responded that the base rent AIA is proposing is $0.03 per square foot and staff is proposing $0.15 per square foot and both would escalate. Both have a participation factor, so as the project becomes successful, there are revenues that would come to the ARRA. Mayor Appezzato asked regardless if the HOME project is successful, it must be successful without affecting the City's General Fund? Deputy Berger responded that is correct. The operation, maintenance and protection of Alameda Point is without any of the City's General Fund money. The public hearing was open. Leslie Medine, HOME project coordinator expressed they have the support of the entire community assembled for tonight's meeting. There is a petition with over 2700 signatures from both the adult and youth groups within the community, which has been presented to Mayor Appezzato. Helene Hanson, HOME project passed out AIA proposal packets to the ARRA governing board. Gina Rodriguez, HOME project indicated that youth, adult, community and HOME members will be speaking tonight on behalf of AIA. Joey Lujan, HOME project expressed that the youth of today are the gateway for the future, searching for ways to find, improve and adjust themselves. HOME upholds a process of understanding community, passion for themselves as a group and individuals. The purpose of HOME is to develop the youth of the community into effective citizens and leaders for tomorrow by developing their skills and providing an environment which allows them to develop projects, which benefits the quality of life in Alameda. Mickey Wilcox, HOME project stated this is his third year at HOME and it has grown since his participation, which has been a central part of his life. Mr. Wilcox expressed he has worked with youth, adults and funders and different entities to make the HOME project a success. This effort should be available to the entire community. -3- Amanda Fenton, HOME project explained that the AIA proposal is divided into three main parts: services in lieu of rent, the credit from the youth businesses, and a cash payment. Throughout conversations with City staff, AIA wanted to insure that the City does not require any out of pocket expenses for their proposal. This is how AIA came up with the $0.03 per square foot, which would cover all municipal services which staff recommended to them. A handout was given to each Board member which shows the three options of services in which the HOME project provides. The first option (A) is if the City were to provide all of these services over ten years, it would cost the city approximately $8,444,223. The second option (B) is the EDC proposal which would give the City $8,973,207 worth of programming value for their youth. The third option (C) which is the HOME proposal which provides all of the services provided, including cash payments and credit, would provide the City with $9,632,512 worth of programming for youth. Michael Wong, HOME project spoke about the comparison of proposals between City staff and AIA. He stated that although there is a significant amount of reduced rent in the AIA proposal, other monetary credits and hours make up the vast difference in the dollar amounts. Lauren Warner, HOME project stated HOME has spent over $750,000 on programs. Eighty -five percent (85 %) is spent on staffing such as coaches, consultants, teachers and administrators. Any of this money spent on rent would require the HOME staff to reduce their staff which would effect the youth. Ms. Warner expressed that in the past three (3) months she has been at HOME, their has been reduction and devotion of youth and coaches. HOME cannot afford to deduct services, but would like to ensure the stability of the organization for the future. Frank Matarrasse, Chairman EDC stated they sent a recommendation to the City Council in support of the proposal from the HOME project. The HOME project staff gave a clear presentation of their proposal, which included covering utility costs and protection of the property and building upgrades. They approached this entire proposal on an economic basis, which is why they have the unanimous support from the entire EDC team. John Abrate, Vice - Chair, EDC indicated he has never seen the most prepared and comprehensive financial plan that a group has ever done, until he reviewed the HOME project proposal. This is a great opportunity to make history with the youth group. Greg Breidenstine -Howe, Supervisor Wilma Chan's office, stated that Supervisor Chan supports the AIA proposal which HOME has prepared. Supervisor Chan has been actively involved with the HOME project since its beginnings. HOME has a proven track record for getting things done, including the Skateboard Project. HOME prepares students for the real world, such as communication and organizational skills. This project will not only benefit the youth, but the entire community. -4- Paula McCloskey, CEO Alameda Chamber of Commerce expressed her support of the HOME project. The students are not asking for money. They are willing to work and do whatever it takes to make this project a success. Ms. McCloskey stated she has been involved in numerous other projects and no other project has gotten students involvement such as the HOME project. This process is bringing the connection between business and education. Moira Fossym, in- coming Chamber of Commerce President expressed her appreciation to the Council for the pro -youth stand they have taken in the past and hope they will continue to do that. Ms. Fossym stated that the entire Chamber of Commerce is in support of the HOME project and would like the Board to give them a chance to be the entrepreneurs that they aspire to become. Berry Bingham, Alameda, stated the success of our students is linked to the success of our community. From the conception of HOME, the AUSD has been on the ground floor with the HOME project. They deserve the chance to go forward with their proposal. They have secured $200,000 for renovation of the building and another $750,000 for programs. Mr. Bingham asked the Board to approve their proposal, as it is best for the community and City. In order to be good successful students, we must take risks and go down that road with them. Mayor Appezzato asked HOME project staff if they did in fact have a commitment of $950, 000? Leslie Medine, HOME project coordinator indicated yes. Suzanne Lindsey, Gallagher and Lindsey stated that Alameda point is the future of the City. Ms. Lindsey urged the Board to accept the HOME projects proposal, so the youth of the City will not have to fight for everything they need. Judge Richard Bartalini stated these young people are asking for an opportunity where they to could provide community service, while at the same time develop the leadership qualities to succeed in life. Although the cost of safety and maintenance is an issue, this is an investment in the kinds of services and programs that the youth would like to provide. This is the kind of development that the adults within the City have a responsibility to offer people. Judge Bartalini urged that the Board accept the AIA proposal and that the City Manager, Jim Flint should be the lead in expediting the lease negotiation. Amanda Kruger, HOME project founding member stated her involvement in this project, has given her the belief that she can do anything. She has sustained leadership -5- qualities, putting on youth conferences, creating festivals and working on the Skateboard project. All of this being part of the HOME project. Ms. Kruger requested that the Board vote in favor the HOME projects proposal. Jean Travis, Alameda, spoke about her daughter, Samantha Travis' development since being part of the HOME project. She stated her daughter has been with the HOME project for about six months and since this time, has successfully handled the challenges of home life, academics, sports and the community activity of HOME. She is receiving a broad understanding of community politics. HOME project has been a perfect vehicle to channel her energies in a community service type atmosphere. She is developing into a well- rounded positive individual within the community. Alicia Morrow, HOME project stated she has been part of the organization for two years. She was chosen to represent HOME as part of their first conference. This conference gave her a sense of community and belonging, something she had not previously experienced. Ms. Morrow stated the HOME project enlightened her on the real world issues, such as racism. After learning this, she is more confident, not caring what other people think of her, as she strives for greatness. Tony Corica, Alameda, stated his son Craig has been part of the HOME project since its beginnings. Mr. Corica is impressed with the concept of how HOME gathered students from the three high schools within the City of various ethnicities and grade levels, working together to improve their community. Mr. Corica stated he has had the opportunity to see the growth of his son and his friends in real world skills. Mr. Corica expressed that the HOME project brings the youth together with the community, for a successful future. He asked the Board to approve a favorable lease agreement with HOME so they can continue to do their work. Craig Corica, HOME project stated he has been involved with HOME since its beginnings back in 1996. It is the most substantial thing he has been involved with in his life. He has been involved with sports, drama, team building, presentation and leadership activities. HOME has given him the experience he needs to pursue a successful career. He asked the Board to vote in favor of HOME's proposal so they can continue producing future leaders of today. Leslie Medine, HOME project coordinator stated she started the HOME project seven years ago. Ms. Medine wants to motivate youth so they can be successful in life. She wants to create a since of community and believes Alameda is the place to make this happen. Their are youth and parents very involved with the success of this organization. Ardella Dailey, acting AUSD Superintendent, expressed her support in favor of the HOME project proposal. The youth, community and teen center is an important part of M the Community Reuse Plan, as part of the future site for this type of program. HOME has grown to the point where the entire City can benefit from it. A proposal like this which brings everyone together, is the future of Alameda. Jack Bertram, President and CEO of Bertram Business Services, stated he operates a high tech firm. Charles King from the HOME project works for him. Mr. King is putting together a data base which will be used to build a web director. This is the benefit of what the HOME project has done for him and Mr. King. Mr. Bertram asked the Board to support this project. Charles H. Ward, III, Economic Development Commission, stated he has worked with some of the youth over the past five months and has seen the processes they have had to go through to make this dream a reality. This project makes sense economically. This project will provide the youth with a place they can call home, give them authority to function in a professional environment and help them to develop themselves overall. They have great drive and ambition for the future of Alameda. Justin Harrison, HOME project stated that when he got into high school, he was not a studious student. However, through the HOME project, he is continually being motivated to graduate and have something to look forward to in life. Mr. Harrison urged the Board to vote in favor the HOME proposal, as it will give many youth like him the basic opportunity of graduating from high school and making it through life. Judy Blank, 34 Killeny Place, Alameda, stated she supports the HOME project proposal. She expressed she is a parent of one of the participants and encourages the Board to support it, as it will allow the youth of the future to become community oriented individuals. Max V. Stiers, HOME project stated the youth of Alameda are in need of this type of organization. With laws like Proposition 21 passing to lock the youth up, this type of organization is needed more than ever. It is constructive and promotes non - violence through community effort. Iry Hamilton, 420 -E Ballena Bay, stated he has been involved with the HOME project for over a year. Through his involvement, he has learned what a remarkable organization this is. It is very important to support what the HOME project is proposing, as it effects the youth of the future. This will create an opportunity for Alameda to have an identity and stories written about it with civic pride. This is an investment in young people within the City and the Board should vote in favor of it. Gordon Li, HOME project stated he has been a HOME member for two years and attends Alameda High School. He has grown and gained a significant amount of confidence being a part of this organization, gaining leadership skills and running for -7- school board offices. Mr. Li expressed that HOME has given him enough experience, that he would like to give back to the City. Beverly Bruner Camp, Alameda, stated members of the HOME project have empowered her significantly. After many years of relying on others, HOME has given her the realization that she can do anything she likes independent of anyone. Through the HOME project, we have a lot to be proud of with the youth of Alameda as they continue to graduate and become future successful individuals for the City of Alameda. Nancy Clark, President AIA, sponsor of the HOME project expressed her support.. This project is all about learning and becoming effective citizens within the City of Alameda. She stated that the City's staff has challenged members of the HOME project committee and cause them to really look at their overall economic viability to sustain this project. This has forced each and every member of HOME, including the youth, to do their homework to evaluate their proposal and make it a reality. Ms. Clark asked the Board to vote in favor of the AIA proposal. Adam McHolden, HOME project stated members of the HOME project, including the youth worked very hard on the skateboard project. They are a good group and the Board should vote in favor of the proposal. The public hearing was closed for Authority discussion. Mayor Appezzato stated the Board has a significant responsibility in converting the base. He acknowledged that the AIA proposal is one of the best business plans he has seen, since the Board has had to review so many public benefit conveyance plans, as part of the Community Base Reuse Plan. About six months ago, on a three to two vote, the Board approved a museum that did not have the resources the HOME project has. Mayor Appezzato did not support that public benefit conveyance for a museum, because it was not financially feasible, however it did go forward with a $2 million hit in revenue. If the Board can approve a museum which may or may not succeed, when we look at a group which represents our own community and the business plan they have provided, it is worth the risk if we work together to make it succeed. Mayor Appezzato stated he would vote in support of AIA proposal, if there is a motion and second motion to support it. Member Daysog thanked each HOME project member for their individual presentation and thoughtful discussion. Like the youth, the adults share the same thoughts and feelings, in knowing that there are challenges that youth face daily. It is imperative that we provide and work for opportunities that provide constructive activities. Member Daysog stated although it is true that the AIA proposal seeks sub - market rent, but if it means that we can establish a teen center that diverts someone from activity that may not be the best thing for him or her, then we are doing something positive. That is the value of doing something that is worth doing, in light of all the challenges we face. Member Daysog stated he will second the motion. Member Johnson stated this is a big event for the City of Alameda. There are so many expectations that many youth have now, including necessary experience and a sense of familiarity with real life experiences. The presentation is complete and the numbers look good. Staff has been working under the financial direction of the council, which is why they prepared a proposal. The age group in which the HOME project serves, has never been served within the City. The recreation departments within the City are great, but they are not focused on serving this age group. This project is a great effort in preparing our youth to go out in the world. This is also the Board's one opportunity to lease out this property now, as the City of Alameda may not be able to afford to lease or sell it at this rate. Now is the time to do it. Member DeWitt stated that when this project was presented he evaluated it on two things: first, is it a worthy project and second, is it a sound business proposition for the City? The AIA proposal put together is worthy to support, considering they are doing upgrades to the kitchen area and other parts of the building. Alameda has the potential for doing a lot of wonderful things with the right direction, guidance and hard work, thanks to Leslie Medine. Member DeWitt stated the program is worthy and is prepared to make a motion. Member DeWitt moved approval of the AIA proposal. The motion was seconded by Member Daysog, and passed by the following voice vote: Ayes - 4; Noes - 1 (Member Kerr); Abstentions - 0. Discussion. Member Kerr stated she agreed this is an exciting proposal, although she has a couple of concerns. Normally, organizations who do not have a business income, only show some documentation of the money they have. Many of the programs they propose like the Charter school, would normally be funded by the Alameda Unified School District. Some of the services promised include monitoring the skateboard park, which was already promised once and has not been fully monitored. Member Kerr stated that we are needing over $3 million a year to upkeep Alameda Point and not having title to the property, it is not a good time to take this type of risk. Staff's recommendation has been extremely generous and kind. However, Member Kerr stated that she cannot support the AIA recommendation because it is a half million dollars less than staff's recommendation. Mayor Appezzato stated Member Johnson's comments about City staff is correct. The Board sets the policy and they are instructed to back it up. Staff has acted under the Board's direction. There is a major financial responsibility to the community, however if the Board can approve a museum, they can certainly approve this project. Like every other public benefit conveyance, staff from the HOME project will have to make this work. HOME will be responsible for all of the maintenance and rehabilitation and III making the project succeed. Tonight the Board believes they are doing the right thing that all 75,000 citizens of Alameda can be proud of. 5. ORAL REPORTS 5 -A. Oral report from the BRAG. Pattianne Parker, Reuse Subcommittee Chair, stated the BRAG has voted to accept the HOME projects proposal. The March 25, 2000 town meeting was a success, which addressed many issues. The BRAG has renamed itself to the Alameda Point Advisory Commission (APAC) and has a new mission statement, which will act as an advisory group to the local ARRA, which is now the City Council members, not the regional members. Ms. Parker stated they are offering an institutional memory, as there has been a lot of hours and public input into the redevelopment process up until this point. The BRAG accepted the staff's proposal as it relates to the option to purchase on sublease agreements. The BRAG's main goal is to ensure that no property is designated or sold off before there is an update to the general plan which updates Alameda Point into the City of Alameda. 5 -B. Oral report from the Deputy City Manager (non- discussion items). None. 6. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) Bill Smith, Alameda, stated that he understands one of the Councilmembers expressed some concern about Main Street out at the base, having sinkholes. There are sinkholes near the lagoon where Mr. Smith lives. When the elders had spoken about it, one of the wives had their legs go through one of the sinkholes, which is about five to six feet deep. This is a landfill and there is some great concern. The pipes on this landfill are going to break. The infrastructure bank of the State of California should be properly advised, as it is the City's ultimate source of funding. The governor of California increased this fund to $547 million, which gives the City a good reason to claim dislocation of liabilities. 7. COMMUNICATIONS FROM THE GOVERNING BODY Member Kerr stated she has asked the City Manager to provide an off - agenda report on what is happening with the museum. In the six months in which it has been approved, she has not seen or heard of any activity going on at the base for this -10- museum project. If the museum is imploding, then the Board and staff needs to start a new marketing activity. Building 77 is sacred, which was the deal between the Navy and the museum staff, however Building 41 is not. Member Kerr stated she feels an even bigger urgency now, for the financial welfare of Alameda Point. Mayor Appezzato stated he has a feeling the museum is going to go away and maybe the Board and staff can trade this project (HOME), in place of the museum. There are two other museums which are serving the community well and there is much concern that this museum was not viable before and it is not viable now. Member Kerr stated if it is not "flying," it is time to start a marketing effort. Member Daysog thanked City Hall for putting up new flags over the entrance on Webster Street. There are new federal, state and local flags. Mayor Appezzato thanked everyone for attending the meeting and hopes the HOME project is a success. 8. ADJOURNMENT The meeting was adjourned at 7:45 p.m. Respectfully, Lucretia Akil ARRA Secretary - 11 -