2010-11-16 Joint CC ARRA CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL, ALAMEDA
REUSE AND REDEVELOPMENT AUTHORITY (ARRA), AND
COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY- - NOVEMBER 16, 2010- -7:01 P.M.
Mayor /Chair Johnson convened the meeting at 11:50 p.m.
ROLL CALL - Present: Councilmembers / Board Members / Commissioners
deHaan. Gilmore, Matarrese, Tam and Mayor /Chair
Johnson —5.
Absent: None.
CONSENT CALENDAR
Board Member /Commissioner Tam moved approval of the Consent Calendar.
Board Member /Commissioner deHaan seconded the motion, which carried by
unanimous voice vote — 5. [Items so enacted or adopted are indicated by an asterisk
preceding the paragraph number.]
( *10 -76 CIC) Minutes of the Special Community Improvement Commission Meeting held
on October 19, 2010. Approved.
( *ARRA) Recommendation to Approve a Waiver of License Fees for Alameda Naval Air
Museum. Accepted.
EXECUTIVE DIRECTOR COMMUNICATION
(ARRA) Alameda Reuse and Redevelopment Authority Board Composition: Options for
New Structure. Continued to December 1, 2010.
REGULAR AGENDA ITEMS
(10 -560 CC) Recommendation to Authorize the Community Improvement Commission
of the City of Alameda to Enter into an Exclusive Negotiation Agreement with
Warmington Residential for Redevelopment of the City's Corporation Yard Located at
1616 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way; and
(10 -77 CIC) Recommendation to Approve an Exclusive Negotiation Agreement by and
between the Community Improvement Commission and Warmington Residential for
Redevelopment of the City's Corporation Yard Located at 1616 Fortmann Way and the
City's Animal Shelter Located at 1590 Fortmann Way.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 1
Community Improvement Commission
November 16, 2010
(10 -561 CC/10 -78 CIC) Councilmember /Commissioner Matarrese moved approval of
continuing the meeting past 12:00 midnight.
Vice Mayor /Commissioner deHaan seconded the motion, which carried by unanimous
voice vote — 5.
The Deputy City Manager — Community Development gave a brief presentation.
Vice Mayor /Commissioner deHaan inquired what safeguards are in place in the event
that assets [the Animal Shelter and Corporation Yard] cannot be relocated.
The Deputy City Manager — Development Services responded the term of the Exclusive
Negotiation Agreement [ENA] would expire after eighteen- months.
Councilmember /Commissioner Tam left the dais at 12:01 a.m. and returned at 12:02
a. m.
Councilmember /Commissioner Gilmore stated the staff report notes that the CIC would
reimburse Warmington Residential $100,000 for geotechnical and environmental testing
costs if Warmington Residential elects not to proceed with the project; inquired whether
the $100,000 is different than the amount for the site study to move the Corporation
Yard and Animal shelter, to which the Deputy City Manager — Development Services
responded in the affirmative.
Councilmember /Commissioner Gilmore inquired where the money would come from, to
which the Deputy City Manager — Development Services responded the CIC budget.
Speakers: Chris Anderson, Grand Marina (submitted Power Point); Andy McKinley,
Grand Marina (submitted correspondence); and Michael McClellan, Warmington
Homes.
Following Mr. McKinley's comments, the Deputy City Manager — Development Services
stated retail would be part of the Northern Waterfront General Plan and would be
compatible; tomorrow, staff will be meeting with the Grand Marina owners regarding
lease negotiations; the ENA has sufficient flexibility.
Councilmember /Commissioner Matarrese stated that he would like to see specific
Grand Marina retail incorporated in the negotiations; the Northern Waterfront is littered
with failed restaurants; that he hopes industry around the boatyard is kept; the light
industrial and retail use area that benefits the City and should be maintained.
Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 2
Community Improvement Commission
November 16, 2010
Vice Mayor /Commissioner deHaan inquired what is the percentage of [allowed] live -
aboards, to which the Deputy City Manager — Development Services responded 10 %.
The Panning Services Manager stated the Bay Conservation and Development
Commission (BCDC) limit live - aboards to 10 %.
Councilmember /Commissioner Matarrese moved approval of giving direction to ensure
that the CIC's interest in preserving and promoting industrial and commercial use
serving the maritime community, specifically the Alaska Packers building, be highlighted
as a CIC interest.
Councilmember /Commissioner Tam inquired whether Councilmember /Commissioner
Matarrese is giving direction on the ENA.
Councilmember /Commissioner Matarrese responded the direction is to enter into the
ENA and ensure that the CIC's interest be highlighted to maintain and promote
commercial activity, specifically the Alaska Packers building.
The Deputy City Manager — Development Services requested clarification on whether
the ENA would be modified or the direction is being provided to staff separately, to
which Councilmember /Commissioner Matarrese responded direction is being provided
to staff.
Councilmember /Commissioner Gilmore inquired at what point parking would be
discussed if the ENA were approved.
The Deputy City Manager — Development Services responded in the first several
months, Warmington Residential would perform soil and environmental assessments;
stated an update could be provided in thirty days; staff would have a better
understanding of Grand Marina lease negotiations at that time.
Councilmember /Commissioner Tam stated that she understands the sentence in the
staff report noting "if Warmington elects not to proceed with the project and terminates
the ENA, the CIC will reimburse Warmington within 60 days for the actual costs of the
geotechnical and environmental testing for an amount not -to- exceed $100,000;" she
does not understand the reciprocity with the City; inquired whether the City could
terminate the ENA if an appropriate site for the Animal Shelter and Corporation Yard
could not be located.
The Deputy City Manager — Development Services responded the ENA term would
expire if locations could not be found.
Councilmember / Commissioner Gilmore stated the question Councilmember /
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 3
Community Improvement Commission
November 16, 2010
Commissioner Tam is asking is would the City be able to terminate the Contract if a site
or sites could not be found to relocate the Corporation Yard and Alameda Shelter after
the City pays Warmington Residential for geotechnical and environmental costs.
The City Attorney /Legal Counsel responded the ENA would terminate for any reason if
the terms of the Disposition and Development Agreement could not be negotiated or
executed, which would include finding alternate sites for the Animal Shelter and
Corporation Yard.
Councilmember /Commissioner Matarrese inquired whether the ENA would lapse and
the City would pay the $100,000 for geotechnical and environmental studies if the City
could not find a site for the Animal Shelter and /or the Corporation Yard.
The Deputy City Manager — Development Services responded the City would not pay
the $100,000; stated Warmington Residential would bear the risk; Warmington
Residential would assume costs by electing to proceed.
Mayor /Chair Johnson stated Warmington Residential would not be reimbursed if they
elect to proceed; the City would pay Warmington Residential $100,000 if Warmington
Residential terminates the Agreement before they elect to proceed.
The Deputy City Manager — Development Services stated the studies would be useful
for renovation or redevelopment.
Vice Mayor /Commissioner deHaan inquired what is the amounted budgeted for
consultants to study Animal Shelter and Corporation Yard relocation.
The Deputy City Manager — Development Services Manager responded the City's
current fiscal year Public Works budget includes $376,000 in CIP funds; stated this
month, staff issued a Request for Proposals (RFP).
Mayor /Chair Johnson suggested that the item be continued.
Councilmember /Commissioner Matarrese withdrew his motion.
(10 -79 CIC) Recommendation to Authorize the Interim Executive Director to Negotiate
and Execute a Purchase and Sale Agreement for the Islander Motel Property Located at
2428 Central Avenue; Issue a Request for Qualifications to Secure a Development
Partner for Conversion of the Islander Motel to Affordable Workforce Housing; and
Approve an Appropriation of $150,000 from the Business Waterfront Improvement
Project Affordable Housing Fund Balance to the Business Waterfront Improvement
Project Contractual Services and Housing Project Development Funds for the Required
Due Diligence Reports and Deposits.
Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 4
Community Improvement Commission
November 16, 2010
The Housing Department Executive Director gave a brief presentation.
In response to Commissioner Gilmore's inquiry regarding when the development
partner would be locked, the Housing Department Executive Director stated the CIC
would enter into an Exclusive Negotiating Agreement (ENA) and Development and
Disposition Agreement (DDA) to tie down the deal prior to being notified of the funding.
Speaker: Robb Ratto, PSBA.
Commissioner deHaan inquired currently, how many units are at the Islander Motel.
The Housing Department Executive Director responded the Islander Motel has 62 units;
stated one unit is occupied by the resident manager; the building has another structure
in back which has been converted to seven units.
Commissioner deHaan inquired how many units are proposed.
The Housing Department Executive Director responded approximately 60 units; stated
an architectural study would need to be done to determine the exact number.
Commissioner deHaan inquired what would be the cost for renovation, to which the
Housing Department Executive Director responded $75,000 per unit.
Commissioner deHaan inquired what would be the square footage of a unit.
The Housing Department Executive Director responded approximately 468 square feet;
stated the units would be studio -size apartments.
Commissioner Gilmore stated the total cost would be $4.5 million.
The Housing Department Executive Director stated the approximate cost for the total
project, including hard and soft costs, would be approximately $16 million, which would
be $270,000 per unit; costs are on the high side but are within today's construction
costs.
Chair Johnson inquired whether costs are consistent with other projects.
The Housing Department Executive Director responded in the affirmative; stated the
Breakers at Bayport and Shinsei Gardens were much higher but the square footage is
greater.
Chair Johnson inquired what was the per unit cost for the Shinsei Gardens units, to
which the Housing Department Executive Director responded between $300,000 and
$400,000; the units are approximately 1,000 square feet.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 5
Community Improvement Commission
November 16, 2010
Commissioner Tam stated the Islander Motel location is better than Shinsei Gardens.
Commissioner Tam moved approval of the staff recommendation.
Commissioner Gilmore seconded the motion, which carried by unanimous voice vote —
5.
ADJOURNMENT
There being no further business, Mayor /Chair Johnson adjourned the meeting at 12:43
a. m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, CIC
The agenda for this meeting was posted in accordance with the Brown Act.
Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority and 6
Community Improvement Commission
November 16, 2010