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2011-03-02 PacketCITY OF ALAMEDA CALIFORNIA fj. V$V SPECIAL MEETING OF THE CITY COUNCIL WEDNESDAY MARCH 2,2011 5.30 P.M. Location: Cit Council Chambers Conference Room, Cit Hall, corner of Santa Clara Avenue and Oak Street Agenda 1 Roll Call Cit Council 2. Public Comment on A Items Onl An wishin to address the Council on a items onl ma speak for a maximum of 3 minutes per item 3. Adjournment to Closed Session to consider: 3-A. CONFERENCE WITH LABOR NEGOTIATORS Aqencv ne g .otiators: Joe Wile Crai Jor and Human Resources Director Em or Alameda Cit Emplo Association Ala.m.eda Fire Mana Association, Alameda Police: Mana Association, Alameda Police.. Officers Association Alameda Police Officers No.n-Swo.rn, International Association of Fir International Brotherhood of Electrical Workers, and Mana and Confidential Emplo Association 4. Announcement of Action Taken in Closed Session, if an 5. Adjournment Cit Council Marie L. Gilmore, Mayor AGENDA Regular Meeting of the Governing Body of the Alameda Reuse and Redevelopment Authority Alameda City Hall Council Chamber, Room 390 2263 Santa Clara Avenue Alameda, CA 94501 Wednesday, March 2, 2011 Meeting will begin at 7 :00 p.m,, 2. ORAL COMMUNICATIONS, NON- AGENDA (PUBLIC COMMENT) (A limited number of speakers may address the governing body in regard to any matter over which the governing body has jurisdiction or of which it may take cognizance, that is not on the agenda; this section is limited to 15 minutes; additional public comment will be addressed under Item 0.) 3. 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. 3 -A. Approve the minutes of the Special Meeting (Closed Session) and Regular Meeting of February 2, 2011; and the Special Joint city council and ARRA Meeting (Closed Session) of February 15, 2011. 3 -B. Approve an Environmental Testing contract with Pacific EcoRisk to Support 2011 Dredging in an Amount not to Exceed $138,740 to be Reimbursed by the Maritime Administration. 3 -C. Reserve Building 22 for Active Recruitment of a Food and Beverage Tenant Compatible with the Existing Neighboring Tenants. 4 -A. Award Contract for the Alameda Point Resource Team to Perkins Will in the Amount of $200,000 for Land Use Planning Consulting Services. 5 -A. Oral Report from Member deHaan, Restoration Advisory Board (RAB) Representative Highlights of February 3, 2011 RAB Meeting. ARRA Agenda- March 2, 2011 Page 2 6. 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 or of which it may take cognizance, that is not on the agenda; speakers not called under Item 2 may address the governing body at this time.) 7. EXECUTIVE DIRECTOR COMMUNICATIONS 7 -A. Update on Alameda Municipal Power's Response to Lawrence Berkeley National Lab's Request for Qualifications. L.11 i MA-11L W-111 This meeting will be cahlecast live on channel 15. Notes Sign language interpreters will be available on request. Please contact the ARRA Secretary at 747 -4800 at least 72 hours before the meeting to request an interpreter. Accessible seating for persons with disabilities (including those using wheelchairs) is available. Minutes of the meeting are available in enlarged print. Audio tapes of the meeting are available for review at the ARRA offices upon request. UNAPPROVED MINUTES OF THE SPECIAL MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesda Februar 2, 2011 The meetin convened at 6:30 p.m. with Chair Gilmore presidin Roll Call Present: Board Members Bonta, deHaan, Johnson, Tam and Chair Gilmore 5. Absent: None. The meetin was adjourned to Closed Session to consider: *11 -o1 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (54956.8): Property:, Footprint of Veterans Administration proposed federal entit to federal entit transfer at Alameda Point, and area known as Northwest Territories at Alameda Point (maps of the areas on file with ARRA Board secretar at Cit Hall, Cit Clerk's Office). Ne parties: Veterans Administration, US Nav ARRA Under ne Price and Terms Followin the Closed Session, the meetin was reconvened and Chair Gilmore announced that re Real Pro pert y the ARRA provided direction on terms. ADJOURNMENT There bein no further business, Chair Gilmore adjourned the meetin at 7:25 p.m. Respectfull submitted, Irma Glidden ARRA Secretary UNAPPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, February 2, 2011 The meeting convened at 7:31 p.m. with Chair Gilmore presiding. 1. ROLL CALL Present: Board Members Bonta, deHaan, Johnson, Tam and Chair Gilmore ----5. Absent: None. 2. CONSENT CALENDAR *11 -011) Approve the minutes of the Regular Meeting of January 5, 2011. *11 -012) Adopt a Resolution Amending Resolution No. 49 Setting the Order of Business of the Alameda Reuse and Redevelopment Authority Meetings. Member Tarn moved for approval of the Consent Calendar. vice Chair Bonta seconded the motion, which carried by unanimous voice vote 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] 3. REGULAR AGENDA ITEMS (11 -013) Endorse "Going Forward" Process and Schedule for Alameda Point Redevelopment. The Deputy City Manager Development Services /project manager, summarized the Going Forward process. The interdepartmental team includes the Planning Services.. Manager and Public Works Director. The Going Forward process is a two -tier process: Tier 1 is.developing a vision and project description for Alameda Point through July 2011 to use as a basis to. start the City's environmental review process (CEQA); and the Nay for their NEPA process in. terms of conveyance. Tier 2 is the Entitlement process from July 2011- July 2013, which has.four major entitlements: Specific Plan, Master Infrastructure Plan, a Conveyance Agreement, and State Lands Exchange Agreement. A community- planning workbook was developed and provided online. The workbook was used to facilitate several community workshops that were held. Staff will prepare a summary report that will be presented at the March 2 ARRA meeting. A tenant forum is scheduled next week. The next six months of the Going Forward process will focus on several efforts. The first and biggest is the Master Planning effort, which will include the project .management tea .and a team of consultants: land use planning, economics, civil engineering, transportation, environmental, sustainable infrastructure. There is also a plan to work with ARRA staff and PM Realty on a long -term leasing strategy to leverage additional funding and create momentum. for longer term leases on buildings that will be remaining, as well as work with the Navy and State Lands on joint proposed conveyance objectives and principles regarding land conveyance. There will be a pro forma, and discussion of land value and structuring how the land is transferred from the Navy. Member Johnson inquired whether there is an ARRA agreement with Pill[ Realty and the status of an RFP for a property manager. The Acting City Attorney responded that there is a property management agreement with PM Reality from 2004. Regarding the status of the RFP for a property manager, the Deputy City Manager Development Services replied that an RFP has not been done yet, but staff will make it a priority as time permits. Chair Gilmore reminded staff that she has asked for a real estate leasing primer from staff, and would like this primer before a property manager RFP, because it will. inform the RFP. The Deputy City Manager Development Services replied that the leasing primer has been put in a draft .scope for an economics firm to help staff put together a presentation. The primer will be done as soon as there is an economist on board. The project management team is working with the on their project as a potential institutional user; a (APC) and Building Futures for Women and Chil longer term needs, but on a smaller piece of implementing a federal transportation administra routes at Alameda Point. Federal Government, veteran's Administration, well as with the Alameda Point Collaborative fren, consolidating their facilities to meet .their and. The Public works department will be on grant for transportation improvement and The Deputy City Manager Development Services prepared a budget of the project, which will be discussed further on 2/15 at the mid year adjustment. The Planning Services Manager discussed the adopted general plan for Alameda Point. Member Tarn discussed the importance of engaging the school district, East Bay Regional Park District (EBRPD), Peralta Community College District, as they were not included in the outreach. The Deputy City Manager Development Services explained that staff will be meeting with the EBRPD tomorrow, and will include these agencies in the outreach. Vice Chair Bonta supports moving forward. with the Going Forward process, as the plan provides specificity and focus, with flexibility an important balance. Member. Johnson and Chair Gilmore also support moving forward. Chair Gilmore emphasized the importance of flexibility. She stated that the process and plan couldn't be so rigid that opportunities are missed. Speakers: Doug Biggs, Rob Ratto, Elizabeth Greene, Helen Sause, Carol Gottstein, Fancy Hird, Gretchen Lipow, Karen Bey. Member deHaan moved to approve endorsing the .Alameda Point Going Forward" Process. Member Johnson seconded the motion, which carried by unanimous vo ice vote 5. (11 -014) Provide Direction on Key Aspects of Response to Lawrence Berkeley National Laboratory's Request for Qualifications for a Second Campus at Alameda Point and Approve Issuance of Request for Qualifications for Developers. The Deputy City Manager Development Services gave an overview on the Lawrence Berkeley National Lab (LBNL) RFQ for a second campus. The interdepartmental team lead by the Deputy City Manager Development Services, includes the Public Works Director -(Matt Naclerio), Planning Services Manager (Andrew Thomas), Alameda Municipal -Power General Manager (Girish Balachandran), and Economic Development Manager (Eric Fonstein). The team has prepared the first draft of the response, identified key aspects and would like policy direction on four key points to finalize a competitive response: 1) Site Location, 2) Planning Guidelines 3) Financial Incentives 4) Developer RFQ. The Deputy City Manager Development Services discussed the Next Steps and timeline for the decision making process and selection of development team. Chair Gilmore inquired where the developer's economic incentive will come from. The Deputy City Manager Development Services discussed initial ideas, including fee development and private development to land adjacent, and that it was structured in the RFQ to ask each of developers to put forth recommendations. Member Johnson commented that the zero cost idea is worth it to have LBNL at Alameda Point. Member Johnson stated that the project should have a defined, tight design and review process. The Planning Services Manager discussed various ways to structure a design and review process that would give the community assurance of high quality design buildings that would fit within the design expectations of the city and minimize the time and energy LBNL would have to spend in a normal design and review process. Member Tara discussed LBNL's expectation that the ARRA will engage an entity with appropriate development experience. Member Tam inquired whether LBNL can be part of the developer evaluation process so that there is an even playing field with everyone else. The Deputy City Manager Development Services explained that LBNL clearly stated that a developer team was not required in the initial process but that the project team would check to see if LBNL would .like to weigh in on the evaluation so that the ARRA doesn't end up with a partner that could be of a disadvantage. Speakers: Rob Ratto, Elizabeth Greene, Seth Hamalian, Phil Owen, Karen Bey, Nancy Hird.. Vice Chair Bonta asked for clarification on the $14M in benefits to.the. city, inquired about the time period and the assumptions. The Deputy City .Manager Development Services explained that the $14M is based on an economic impact study. done for the second campus, and. contemplates Boo jobs in the first phase. The economic development manager stated that the study. is based on facilities in walnut Creek and Emeryville, and how much revenue and impacts there were on .those host communities. Since that study was done, the LBNL's conception of the. second base initial phase has grown much larger, as it would be consolidating not just those two facilities, but also the Oakland Berkeley facilities. Vice Chair Bonta clarified that the ARRA would be proposing .a no- cost long -term lease and an option to buy at.no cost. The Deputy City Manager. —Development Services confirmed that when the City receives the land from the Navy, it would then b.e transferred to LBNL. The Acting General Counsel explained that the ARRA ha Lease in Furtherance of Conveyance (LIFOC) so will be providing a sublease, and when title to the property is received, it will be title going to LBNL. Vice Chair Bonta inquired whether there is a site that staff determined to be second best, and ghat were the drawbacks as compared to the preferred site. The. Deputy City Manager Development Services explained that there are some outstanding leaseholds the project team .felt .would create some uncertainty, so the preferred site had the least number of issues. The Planning Services Manager stated that both sites are great and the ARRA is open to discussing variations. of the sites. Vice Chair Bonta suggested the ARRA be. more bold to attract. LBNL by offering to provide a rr.enu of other options and be aggressive in financial incentives .and no -cost incentives, AMP. discount, reduced planning fees, and tax rebates. Member Johnson agrees and supports making that part of the initial proposal so that it is more attractive and .highly competitive. Member Tam inquired if LBNL's existing facilities in walnut Creek and Emeryville were able to generate the $14M tertiary economic benefit from those communities. The Economic Development manager explained that the analysis by CBRE looked at direct and indirect spending and the tertiary, multiplier effect of payrolls, of employee spending; including spending in restaurants, shopping, and sales tax. The Board discussed the existing amenities on Alameda Point, Webster Street, and Marina Village. The Deputy City Manager Development Services explained the main reason why staff did not propose any additional waivers or fees. The project team does not yet have enough information on potential impacts, or ghat LBNL is proposing, especially in terms of how much money is brought to the table for infrastructure. There is also no developer on board yet that could advise on the financial side of the deal. The project team is concerned about giving away too much too soon because there are still transportation infrastructure burdened out at Alameda Point. Member Johnson discussed not proposing anything specific, but suggested indicating a .catalog of other incentives the ARRA is open and willing to discuss with .LBNL.. Member deHaan commented that owning an electric company is extremely powerful. The Deputy City Man ager Development Services informed the Board that the Alameda. Municipal Poorer AMP) General Manager has discussed the proposal with the Public Utilities Board. There are mitigafeable risks and .concerns about load and usage, AMP has to be careful not to offer discounts on. rates that might spike usage. Staff can be more responsive and can start addressing and negotiating terms if /when the ARRA is shortlisted. Member Johnson commented that there is a risk if a long term contract for power. is .given, .and the user goes away, making a comparison to when .the Navy closed the. base. Fortunately for the City of Alameda, because of the long term power contract it had with .the .Navy, the. City had excess power which was sold back to the grid during the power crisis. Member Johnson stated that the LBNL scenario should not be viewed as risk, but as an opportunity. Chair Gilmore requested a full report from the AMP General. Manager on the electric issue. The Acting City Manager stated that a report will be presented .at the next ARRA meeting on March 2. Member Johnson motioned to direct staff to prepare and put forth an RFQ for a .Developer for the LBNL project. Mice Chair Donta seconded the motion, which carried by unanimous voice vote 5. (11 -015) Oral report from Member deHaan, Restoration Advisory Board (RAB) representative Highlights of January 6, 2011 Alameda Point RAB Meeting. Member deHaan reported that the RAB discussed Building .5 and .5A (Site. oU -2C), a 1.5M .square feet complex, to make a determination to bring the site to rernediation level. The site was the center and hub of industrial operation, there was lots of activity causing a major impact to the environment, including radiation concerns. The Navy has four proposals: 1) take no action, 2) cement the pipes, 3) tear the building down, and 4) dig and haul. Member deHaan commented that he is impressed with .the dedication of the FLAB members .and the community, they have depth of knowledge which they lend as community support and have come .up with good recommendations. The RAB also discussed the conveyance status and the redevelopment planning status. Member deHaan stated that the Deputy City Manager Development Services presented the. Going Forward process to the RAB and it was well received. Member deHaan stated that he will not be able to attend the February 3 RAB meeting due to a scheduling conflict. Member Johnson also reminded staff and the public not to forget the commitment of the Navy during the rernediation process. The Deputy City Manager Development Services stated that staff will ask the Board for policy direction on the oU -2C site in corning months. Speaker. Gretchen Lipow 5. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT) None. 6. EXECUTIVE DIRECTOR COMMUNICATIONS None. 7. REFERRALS FROM THE GOVERNING BODY None. 8. COMMUNICATIONS FROM THE GOVERNING BODY None. There bein no further business, Chair Gilmore adjourned the meetin at 10:06 p.m. Respectfull submitted, Irma Glidden ARRA Secretary UNAPPROVED MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY ARRA MEETING TUESDAY- FEBRUARY 2011- -5:00 P.M. Mayor /Chair Gilmore convened the meeting at 5:00 p.m. Roll Call Present: Councilmembers /Board Members Bonta, deHaan, Johnson, Tarn and Mayor /Chair Gilmore 5. Absent: None. The meeting was adjourned to Closed Session to consider: -058 CC conference with Legal Counsel Anticipated Litigation; Significant exposure to litigation pursuant to subdivision (b) of Section 54955.9; Number of cases: Two 11- ARRA Conference with Real Pr opertv Negotiators; Property: Alameda Point; Negotiating parties: ARRA and Navy; Under negotiation: Price and terms Mayor /Chair Gilmore called a recess to hold the regular meeting at 7:50 p.m. and reconvened the closed session at 12:30 a.m. Following the closed Session, the meeting was reconvened and Mayor /Gilmore announced that regarding Antici ated Litigation, legal strategy was discussed and the City Council provided direction; and regarding Real Property price and terms were discussed; direction was given to staff. Ad ou rn meet There being no further business, M ayor /Chair Gilmore adjourned the meeting at 1:38 a. m. Respectfully submitted, Lara weisiger City clerk The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda city Council and Alameda Reuse and Redevelopment Authority February 15, 2011 Alameda Reuse and Redevelopment Authority Memorandum To: Honorable chair and Members of the Alameda Reuse and Redevelopment Authority From: Lisa Goldman Acting Executive Director Date: March 2, 2011 Re: Approve an Environmental Testing contract with Pacific EcoRisk to Support 2011 Dredging in an Amount Not to Exceed $133,x'40 to Be Reimbursed by the Maritime Administration BACKGROUND The Alameda Reuse and Redevelopment Authority (ARRA) is proposing to dredge the navigational entrance channel to Alameda Point to. accommodate ..Maritime Administration (MARAD) vessels and dispose of the dredged material for the third time in order to comply with the Technical Requirements of the MARAD lease.. The.Alameda Point entrance channel is located in the eastern portion of San Francisco Bay, at .the crest end of Alameda. The proposed maintenance dredging involves the removal of accumulated sediment in order to return the channel to a depth that would alto. unencumbered maneuvering of commercial and recreational vessels over its entire length The proposed dredge depth is —34 feet below glean Lager Low Water -34 feet M LLv) with a trio -foot over d redge tolerance, tiro feet deeper than previously performed dredge activities. Weston Solutions, Inc. performed... baseline testing to determine dredge dept, and channel. conditions as a subcontract to the Moffatt Nichol engineering contract. in 1 005 This work must now be updated to provide accurate information about current channel. conditions. MARAD will reimburse the ARRA for the cost of updated environmental testing and of the subsequent dredging consistent with their.lease. DISCUSSION As was the case in. 2003, the proposed dredging event will require more extensive. and deeper testing because of the depth of the dredging. In addition, as a result of the November 2007 San Francisco Bay oil spill, regulators are asking communities planning to dredge to conduct additional testing. The proposed budget includes a large contingency because the regulators may ask for more specialized testing Once the testing is. done, bid documents for the dredge can be developed and advertised. The contract award will require ARRA action in late summer. Agenda terr #3-13 ARRA 3-2 -20 1 1 Honorable Chair and March 2, 2011 Members of the Alameda Reuse and Redevelopment Authority Page 2 of 2 FINANCIAL IMPACT Fund 858, ARRA Lease Revenue, will be used and will be reimbursed .by MARAD. The amount budgeted for the contract is expected to be approximately .$138740, including a 40% contingency. The final contract amount will be determined by the amount of testing required. There is no impact to ARRA lease revenue or the General Fund. RECOMMENDATION Approve an Environmental Testing Contract with Pacific EcoRisk to support 2011 dredging in an amount not to exceed $138,740 to be reimbursed by MARAD. By: F- N nette Mocanu Finance Administration Manager Approved as to funds and account, Fred Marsh Controller I 1 001 NA Alameda Reuse and Redevelopment Authorit Memorandum To: Honorable.Chair and Membe of the Alameda Reuse and Redevelopme Authorit From: Lisa Goldman Actin Executive Director Date: March 2, 2011 Re: Res Buildin 22 for Active R of a Food. and Bevera Tenant Compatible with the Existin Nei Tenants BACKGROUND Buildin 22 is a land plane han located in the western..row. of ...hangars...near. the wildlife refu (E 1) at Alameda Point. The han :.in 1941. a nd is approx.imatel 65;000 ..s feet. The t e nants. alon that roar. of... han i St.:. Geor Spirit (B.21) and Rockwall. Winer (B24), both of w hich provide tasting -roo open ..to the public. In December 201 the... Cit wa s contacted .b a pote.n tenant 1 for warehouse space for an exercise and:trainin facilit The. potential eras shown Building 22 and .advised.t.h.at. B .Sports.(BIa.dium) would need to approve th.e use.. because.of Blad.ium'.s. exclusivit co nta.i n ed.. in. its: I ease.. To:staff's knowled Bladium. has not provided approval of the proposed trainin facilit use. DISCUSSION On Jul .27, 20.1.0, the Cit Council approved:an Management .Strate for. all of the Cit real estate assets. One of the lon leasin .strate discussed in the AMS was to develo industry c and. to modify leasing p ractices: in order to. attract specific .J.ndustri Becau �.of its. Iocat.ion.an.d its. e.xi nei staff is recom endinc which will.be vacant b June �30 :201 be. reserve ilhat:Buildin 22, an d activel marketed for.the. next six. months for. uses that are the .:fbod:..and bevera industr -consistent with the cluster �that alread y exists ..'S pecifica I ly,� staff. intends to activel r.ec.ru.it.a.nd.attract.a.mic.ro b.rewe r Comm e r cia m g m aterials fo r BU i Id i n 22 wil I.: be �d.eve I o ped, a n d staff wi I I:atte rid. a: m i C b rewe r co nf.e r n ce i n -S an Francisco next month. However, the t enan t v i e wed. Buildin 22 in Dece has sub a..Letter. of Intent for staff s revi a co (Exhibit 2). Staff1s. seekin direction .on how to move forward With this opportunity at Alameda Point. The options include: Agen Item #3-C ARRA 322011 Honorable chair and March 2, 201 Members of the Alameda Reuse and Redevelopment Authority Page 2 of 2 1 supporting the staff recommendation, which focuses on attracting a long -term compatible use for Building 22 and working with the potential tenant to find an alternative location that meets its needs for a two -year lease. 2. Moving forward with a two year lease with the proposed new tenant to the extent Bladiurn approves of the facility, and earn between $130,000 and $260,000 in the first year, depending upon the tinning of the tenant's property takedown. 3. Postponing the decision for 00 days to see what staff learns from the microbrewery conference. Staff would return with an update at the May ARRA meeting. FINANCIAL IMPACT There is no financial Impact at this time from reserving Building 22 for a food and beverage tenant. RECOMMENDATION Reserve Building 22 for active recruitment of a food and beverage tenant compatible with the existing neighboring tenants. es�ectfully submitte Jenfe 'Ott Dep� ty ity Manager Exhibits: 1 Location of Building 22 at Alameda Point 2. Letter of Intent EXHIBIT I 0 f. I Pa:�k 9' M n N A P r, 14 T C I 560' C07 1 03 EXHIBIT 2 Mariner S Athletic, Im.. BROKER ASSOCIATE COMMERCIAL REAL ESTATE January 31, 2011 Sent via email: iTnai oreno c am jott c ci.alaMeda.ca.us athornas ci.alameda.ca.us Manny Moreno J PM Realty Group Dear Manny: On behalf of my client, Mariner Square Athletic, Inc., I any pleased to submit the following proposal to lease warehouse space at 2501 Monarch Street (Hanger 22), Alameda. our client has reviewed and approved this proposal. LEASE PROPOSAL LANDLORD: Owner of Record. TENANT: Mariner Square Athletic, Inc. .A New dba is Under Construction. LOCATION: 2501 Monarch Street (Hanger 22), Alameda, CA 94501 SIZE: 32,500 sf of the Western Side Capon Execution of a Lease and possibly adding the 32,500 sf of the Eastern Side Upon Current Tenant Vacating with a Right of First Refusal for the .Additional Space. TERM: Three (3) Years. LEASE CONIIVIENCEMENT DATE: March 1, 2011 or Sooner. BASE RENT: $0.40 /sf/montla. NNN: TBD. time have not been given these numbers in advance. FREE RENT: Months 1, 2 and 13. EARLY OCCUPANCY: Two weeks prior to Lease Commencement Date. This period w ll. be used to beo Tenant Improvements. No rent charge SECURITY DEPOSIT: Equal to one month's base rent. ANNUAL RENT INCREASES: None. OPTION TO EXTEND LEASE: Two (2 one (1) Year Options. Rent to be Market Rate but not to exceed a Three Percent (3%) Increase over Nlonth Thirt T -Six (3G) for the First Option Period and the same for the Second option Period, but using Month Forty -Eight (48) as the Basis for the Three Percent (3 Increase. 1 t 1