Ordinance 3113CITY OF ALAMEDA ORDINANCE NO. 3113
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER TO
EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS OF
A LEASE WITH STEELTOWN WINERY LLC FOR TEN YEARS WITH TWO
ADDITIONAL FIVE -YEAR OPTIONS IN A PORTION OF BUILDING 43
LOCATED AT 2440 MONARCH STREET, SUITE 100 AT ALAMEDA
POINT
WHEREAS, In 2010, Managing Member, Meredith Coghlan and Winemaker, Tod
Hickman decided to pursue a partnership as winery owners; and
WHEREAS, In May 2013, Steeltown Winery LLC (Steeltown) opened its first tasting
room in Antioch, CA; and
WHEREAS, Steeltown will be rebranded as Building 43 Winery and will be an
artisan winery located in the urban setting of Alameda Point including a tasting room;
and
WHEREAS, The portion of Building 43, located at 2440 Monarch Street, Suite 100,
is approximately five thousand two hundred twenty (5,220) square feet; and
WHEREAS, The proposed lease with Steeltown is for ten years with two additional
five -year options; and
WHEREAS, The sole purpose for which the premises may be used by the tenant is
for bonded winery and tasting room; and
WHEREAS, The proposed monthly base rent for the premise ranges from $2,610 to
$3,405 per month over the 10 -year period; and
WHEREAS, Steeltown is entitled to a capital repair credit up to a maximum of
$27,000 for the capital costs necessary for reuse as a winery and tasting room applied
against the monthly base rent; and
WHEREAS, Capital repairs include ADA restroom work, egress requirement and
ADA flatwork, fire code, electrical and building code updates; and
WHEREAS, In addition to the monthly base rent, Steeltown will pay its share of
common area maintenance costs, all costs for services, utilities and taxes for the
premises; and
WHEREAS, The City holds a $2,610- security deposit and the lease contains the
standard insurance, indemnity, assignment and termination clauses the ARRA required
in its leases and compliant with the Lease in Furtherance of Conveyance (LIFOC) with
the United States Navy.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda
that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or his designee is hereby
authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease with
Steeltown Winery LLC. for Building 43 located at 2440 Monarch Street, Suite 100 at
Alameda Point for ten years with two additional five -year options, subject to such
technical or clarifying revisions as are reasonably determined necessary by the City
Manager and approved by the City Attorney, and the City Clerk is hereby authorized
and directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if,
for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this ordinance. The City Council
of the City of Alameda hereby declares that it would have passed this ordinance, and
each section, subsections, clause, or phrase hereof, irrespective of the fact that any one
or more sections, subsections, sentences, clauses and phrases are declared to be
invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the
expiration of thirty (30) days from the date of its final passage.
0;k'� . Qi.
Presiding Officer of the City Council
Attest:
Lara Weisiger, City Clerk
I, the undersigned, hereby certify that the foregoing resolution was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on the 21St day of October, 2014, by the following vote to wit:
AYES: Councilmembers Chen, Daysog, Ezzy Ashcraft, Tam and
Mayor Gilmore — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 22 "d day of October, 2014.
Lara Weisiger, Cit ' lerk
City of Alameda �J
APPROVED AS TO FORM:
Janet'C. Kern
City Attorney