Ordinance 3119CITY OF ALAMEDA ORDINANCE NO. 3119
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER TO
EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS OF
A LEASE WITH WRIGHTSPEED, INC., A DELAWARE CORPORATION,
FOR SEVEN YEARS WITH TWO ADDITIONAL FIVE -YEAR OPTIONS
AND AN OPPORTUNITY TO PURCHASE BUILDING 41 LOCATED AT 650
WEST TOWER AVENUE AT ALAMEDA POINT
WHEREAS, Wrightspeed is an engineering company started by one of Tesla Motor's
co- founders and headquartered in Silicon Valley. Wrightspeed is a powertrain company
and does not manufacture vehicles; and
WHEREAS, In addition to being a cutting -edge, clean technology company,
Wrightspeed will be adding at least 150 new jobs to Alameda and will represent
significant business -to- business sales tax revenue to the City over the next 7 years; and
WHEREAS, the proposed lease is for seven years with two five -year options to
renew; and
WHEREAS, The proposed rent rate is $0.43 per square foot, but the City will provide
a dollar for dollar rent credit for capital repairs, improvements, and remedial work
completed by Wrightspeed, but shall not exceed approximately three years of rent; and
WHEREAS, During the first five years, after the property is conveyed to the City by
the Navy, Wrightspeed will have an option to purchase the premises at a fixed price of
$8 million, which exceeds the fair -share infrastructure burden for the 5.2 -acre site
consistent with the approved Master Infrastructure Plan for Alameda Point and the
Alameda Point Development Impact Fee; and
WHEREAS, the proposed monthly base rent for the premise is $46,996 for year one.
Base rent shall escalate three percent per year; and
WHEREAS, Building 41 has not been occupied since the base closed in 1997 and
requires a significant capital investment; and
WHEREAS, Wrightspeed will place $1 million in an Improvement Fund prior to
commencement of the lease. The fund will be drawn down as approved capital projects
are initiated; and
WHEREAS, in the event the tenant has not completed the approved capital
improvements, the City will have the right to access the funds to complete the
improvements. The overall improvement budget for reuse of Building 41 is expected to
cost over $2 million; and
WHEREAS, if Wrightspeed exercises the first five-year option to lease, they will be
required to make a security deposit equaling one month's rent in addition to the monthly
rent; and
WHEREAS, Wrightspeed will pay its share of common area maintenance costs, all
costs for services, utilities and taxes for the premises, and comply with lease
requirements for insurance; and
WHEREAS, Wrightspeed will need to use areas of the base to test vehicles on an
ad-hoc basis. The vehicle testing portion of the agreement will be provided through a
license agreement to allow the City flexibility to provide the space around development
and the eventual development of the Northwest Territory by the Veteran's
Administration.
I 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
Wrightspeed, Inc., a Delaware Corporation, for Building 41 located at 650 West Tower
Avenue at Alameda Point for seven 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.
Presiding 0iffiber of the City Council
Attest:
Lara Weisiger, City elerk
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 20th day of January, 2015, by the following vote to wit:
AYES: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie
and Mayor Spencer — 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 21't day of January, 2015.
Lara Weisiger, Cit lerk
City of Alameda
FAI :I :I am IN a
Janet Kern
City )(tto m ey