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1999-11-03 ARRA PacketAGENDA 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, November 3, 1999 Meeting will begin at 5:30 p.m. City Hall will open at 5:15 p.m. . CLOSED SESSION OF THE ARRA TO CONSIDER CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property: Alameda Naval Air Station Negotiating parties: ARRA and the Navy Under negotiation: Terms 2. ROLL CALL 3. CONSENT CALENDAR 5:00 p.m. 3 -A. Approval of the minutes of the regular meeting of October 6, 1999 and the special meetings of October 6, 1999. 3 -B. Report recommending the appropriation of $2.4 million grant funds awarded from the Economic Development Administration (EDA). 3 -C. Report recommending approval of the recommended priorities for the ARRA's 2000 grant application to the Economic Development Administration. 3 -D. Report recommending the amendment of the Standards of Reasonableness to reflect recent ARRA Governing Board Action related to Economic Development Allocation to the Alameda Point Collaborative. 4. ACTION ITEMS 4 -A. Report recommending authorization for the Executive Director to execute a ten (10) year lease, with an option to purchase, on Building 40 with Bladium, Inc. 5. ORAL REPORTS 5 -A. Oral report from BRAG. 5 -B. Oral report from the Deputy City Manager (non- discussion items). ARRA Agenda - November 3, 1999 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.) 7. COMMUNICATIONS FROM THE GOVERNING BODY 8. ADJOURNMENT This meeting will be simultaneously cablecast on channel 22. The next regular ARRA meeting is scheduled for Wednesday, December 1, 1999. Notes: • Sign language interpreters will be available on request. Please contact the ARRA Secretary, Lucretia Akil at 864 -3400 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. APPROVED MINUTES OF THE REGULAR MEETING OF THE AMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, October 6, 1999 The meeting convened at 5:47 p.m. with Chair Appezzato presiding. ROLL CALL 1. 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 Mark Friedman, alternate to Wilma Chan, Alameda County Board of Supervisors, District 3 Kathleen Ornelas, alternate to Sheila Young, Mayor, City of San Leandro Jay Leonhardy, alternate to Jerry Brown, Mayor, City of Oakland Absent: Sandre Swanson, Vice Chair, Ninth Congressional District for Barbara Lee 2. CONSENT CALENDAR 2 -A. Approval of the minutes of the regular meeting of August 4, 1999 and the special meeting of August 17, 1999. Alternate Friedman moved approval of the minutes as presented for the regular meeting of August 4, 1999 and the special meeting of August 17, 1999, and the Consent Calendar. The motion was seconded by Member DeWitt and passed by the following voice vote: Ayes 6. Noes 0. Abstentions -1. Alternate Ornelas arrived after the vote. ACTION ITEMS 3 -A. Report and recommendation from the Deputy City Manager to authorize the Executive Director to finalize negotiations and execute an interim lease through the term of the Master Lease with the Alameda Point Collaborative for Buildings 101 and 92, with a change in use for Building 101. The public hearing was opened. There were no speakers on this item. The public hearing was closed for Authority discussion. -1- Al DeWitt stated Building 92, which is next to Building 101, has a large open area in it. The architect did well to determine that the two buildings could be used well in combination. This will produce something that will be helpful to the Collaborative and the City. The rearrangement in spaces for Buildings 101 and 92 will benefit culturally and socially for the whole City and the Collaborative. Mayor Appezzato asked Assistant City Attorney Terri Highsmith if there are any substantial changes to all of the issues the Board has addressed over the past few months? Terri Highsmith asked if the Mayor if he was asking in reference to the item on the agenda that is before him? Mayor Appezzato said he was speaking of the MOU. Terri Highsmith advised that he should wait for the special session to address that issue. Member Johnson asked if these changes would the allow for the use of a community center? Deputy City Manager David Berger responded that is correct. Member Johnson asked if this would be accessible to the broader community? Deputy Berger responded that is correct. Member Johnson stated this is very positive as there is a need for a community center. The possibility of the red cross is also a positive idea. Alternate Leonhardy asked if Member Johnson had seen the list of planned activities placed before each member, noting education, job training performance among others, which is an ambitious program for the community. Member Johnson stated she had not received that list. Alternate Friedman moved approval of the recommendation. The motion was seconded by Member Johnson, and passed by the following voice vote: Ayes - 7; Noes-O. Abstentions - 0. Alternate Ornelas arrived after the vote. Discussion. Member DeWitt stated the Collaborative is going to pay the common service fee and they are also responsible for the upkeep of the building. This is not just another government run type of program, as there is also individual participation to make this project work. Alternate Leonhardy expressed his appreciation of how the staff report referred to the people affected by this Collaborative effort as the "formerly homeless." It is wonderful they are taking the responsibility to operate a community center and integrating both themselves and in the community. It is innovative and creative and Alternate Leonhardy indicated he has not heard of this effort anywhere else. Mayor Appezzato stated that he wished there could be another word other than homeless as this word has been abused, misused and used to scare people into believing that people who are homeless are something other than what we are. 3 -B. Report and recommendation by the Deputy City Manager for approval for fiscal year 1999 -2000 Alameda Point budget. The public hearing was opened. There were no speakers on this item. The public hearing was closed for Authority discussion. Member Daysog moved approval of the recommendation. Motion was seconded by Alternate Member Friedman. Ayes - 8; Noes - 0. Abstentions - 0. Discussion Member DeWitt asked if the item that was just approved is just the Alameda Point budget and does not have anything to do with the bond or financing issue. Deputy City Manager David Berger responded that it does take into account the result of the bond sale that occurred a couple of weeks ago. It has been accounted for in terms of the spending level. There is a specific dollar amount that the ARRA would be paying for City wide capital improvement projects. The City general fund money which is released, would be transferred back to the ARRA, dollar- for - dollar. This was part of the financing plan the Board approved back in May and staff has moved forward and this is reflected in the staff report indirectly. Member DeWitt asked when the bond sold did we get the interest rate we were looking for? Deputy Berger responded that we did much better than the projected interest rate. The net bonds proceeds were about $1.7 million more than they had anticipated because the interest rate was much lower. This is all reflected in this staff report because that was necessary in order to move forward and maintain the current level of service, maintenance, service and protection. Deputy Berger indicated they do not intend to spend the largest investment capital dollars, until they are certain that the transfer will take place at the property. All of this is anticipated in this year's fiscal budget until June 30, next fiscal year. -3- Mayor Appezzato stated that perhaps the Congress will vote to have the no -cost transfer and then we can get title to the property in the next three to six months and deal with the toxic clean -up. Member Kerr stated that we are paying East Bay Mud to take care of the water mains. She understood that the standard opinion of them is that they would not take ownership and maintain the water mains because they did not care for the condition they are in. Member Kerr asked has this changed? Deputy Berger responded staff is still negotiating with them, however there is an interim agreement in place which provides for East Bay Mud to convey water, charge the systems so water can continue to be utilized at Alameda Point and operate, maintain and repair the system. This budget sets aside capital dollars for this and he and the City Attorney are still negotiating with EBMUD on terms and conditions on conveyance of the system, assuming we go forward with conveyance of the Navy. In the interim, operations and maintenance is still in place in this budget. Member Kerr stated she understood the present interim situation. She was hoping there was some new information that they would be willing to take over some ownership and thereby maintenance in the future. Deputy Berger responded that we are headed in this direction. Mayor Appezzato asked if staff was still pursuing other money from the Navy, other than what they agreed to. Deputy Berger responded yes. This budget does not incorporate any money from the Navy, although we have just accepted about $400,000 from the Navy, it does not prohibit staff to continue try and get the full amount. Mayor Appezzato stated the $400,000 was not included in the budget. Deputy Berger responded that is correct. If they put it in the budget, they do not want to send a message to the Navy that staff has finished its negotiated. An amended budget will be presented once staff has finished pursing it. Mayor Appezzato indicated to let the Board know what they can do to assist in getting more money. Deputy Berger responded they are in the process of drafting letters for the Mayor's signature requesting more money. -4- 3 -C. Report and recommendation from the Deputy City Manager to authorize the Executive Director to execute a ten (10) year lease on Building 166 with the joint venture of Nelson Marine and Power Engineering. The public hearing was opened. There were no speakers on this item. The public hearing was closed for Authority discussion. Member Daysog moved approval of the recommendation. Motion was seconded by Member Johnson. Ayes - 8; Noes - 0. Abstentions - 0. Discussion Mayor Appezzato expressed that Nelson Marine has done a wonderful job at Alameda Point. Perhaps the press can do a story on them about their success and growth at Alameda Point. 3 -D. Report and recommendation from the Deputy City Manager to authorize the Executive Director to approve assignment of Quality Assured Product's sublease for Building 21 to Kitz Corporation of America. The public hearing was opened. There were no speakers on this item. The public hearing was closed for Authority discussion. Member DeWitt stated he has not had the opportunity to visit this organization or what they are making. Member DeWitt asked if they are already there and if they are making products presently? Deputy Berger responded yes that is correct. They are making industrial valves and have been for sometime. This is a normal business transactions that takes place with corporate mergers and acquisitions and that is what is happening. Member DeWitt asked if they were going to occupy the whole building? ARRA Facilities Manager Ed Levine responded yes they are. Member Johnson asked if this was an assignment from one company to another as a result of a buy out? Deputy Berger responded yes, that is correct. Member Johnson moved approval of the recommendation. Motion was seconded by Alternate Ornelas. Ayes - 8; Noes - 0. Abstentions - 0. -5- 4. ORAL REPORTS 4 -A. Oral report from the BRAG. BRAG Chairman Lee Perez stated in their last meeting they discussed the toxic plume that is underneath estuary park. A considerable effort is being made to mitigate this and Catellus is involved with this process. Still under negotiations and proceeding is the lease for the museum. A Tourism Task Force has been created from members of the BRAG and the community under the direction of the Governing Authority. 4 -B. Oral report from the Deputy City Manager (non- discussion items). None. 5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) None. 6. COMMUNICATIONS FROM THE GOVERNING BODY None. 7. ADJOURNMENT The meeting was adjourned at 5:58 p.m. Respectfully, ucretia Akil ARRA Secretary APPROVED MINUTES OF THE SPECIAL JOINT MEETING OF THE CITY COUNCIL, ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY, COMMUNITY IMPROVEMENT COMMISSION AND HOUSING AUTHORITY BOARD OF COMMISSIONERS Wednesday, October 6, 1999 The meeting convened at 6:05 pm with Chair Appezzato presiding. PUBLIC PARTICIPATION There were no speakers on this item. ROLL CALL AGENDA ITEM 1. Recommendation to approve Memorandum of Understanding by and among Alameda Reuse and Redevelopment Authority, the Community Improvement Commission of the City of Alameda, the Housing Authority of the City of Alameda, the City of Alameda, the County of Alameda and Point Collaborative for disposition of 125 Barracks Units and 97 Family Housing Units at Alameda Point. Discussion Member Daysog expressed today is a day that was a long time in the making and represents the spirit of compromise and real community building. This effort is not just for the Collaborative, but for the community as a whole so that there is a creative community together. Member Daysog indicated this is what public service is about for him, by joining his fellow colleagues and Councilmembers and crafting solutions for helping people in communities who are in need. This is a fruit of all of our efforts and above all, patience. There are not many opportunities to do something like this and the Board has been prudent in its decision making of this effort thus far. It is great to see that not only are homes being built at Alameda Point for the middle class, but we are expanding our opportunities for families in need, which is something to be proud of. Member Daysog stated that after all units have been accounted for, there are some units left over and there will continue to be policy discussions as to what to do with those units. Some of the issues being raised in the City Proper, regarding the need for work force housing, provides us an opportunity to look at what we can do there so we are servicing a wide gamut of people in need. From very, very -low income, to low - income to moderate - income and to middle - class. Member Daysog expressed his appreciation for being part of this process and looks forward to voting. 1 Mayor Appezzato indicated the Board received a letter from Congresswoman Barbara Lee expressing her support in what they are doing. Both Sandre Swanson and Roberta Brooks could not make it and they have been with the Board since 1993. Councilmember Daysog moved approval of the recommendation. Motion was seconded by Alternate Member Friedman. Motion passed by the following voice votes: Ayes - 19; Nayes - 4. Abstentions - 0. Discussion Alternate Member Leonhardy asked the Assistant City Attorney, Terri Highsmith if it was her understanding that upon the demolition of the existing 39 East Housing units, the City and the CIC have an absolute obligation to fund and the Housing Authority has an absolute obligation to construct the 39 units, provided the Collaborative has complied with their fund raising obligations? Attorney Highsmith responded yes, that is correct. Alternate Member Leonhardy asked what are the fallback locations for the replacement housing in the event of the demolition of those 39 housing units? Attorney Highsmith responded in the event that the early demolition option for the City is exercised, the two sites where the units may be located are either at the primary site, which will require some environmental remediation prior to its ability to be used; or the secondary site, which does not require environmental remediation. If the early demolition option is exercised and the primary site is not available by June 30, 2003, then the secondary site would be used. Alternate Member Leonhardy asked if there was no environmental remediation at the secondary site? Attorney Highsmith responded that is correct. There are not any that we are aware of. Alternate Member Leonhardy asked if the Housing Authority would begin construction by July 1, 2003 or upon the obligation of the Collaborative contribution, whichever is later? Attorney Highsmith responded yes, that is correct. Member Kerr stated there are two purposes that the City wanted about the MOU: one was to eliminate the demand for the 125 barracks units from the Homeless Collaborative and to pay them some money for them. The second was to move the Homeless Collaborative out of East Housing so that all of East Housing could be redeveloped in conjunction with the residential area of FISC. This contract runs for 59 years and the City's property tax will go up significantly. Some of the payments are coming out of the Alameda Point 20% set aside fund, which will be used to pay the infrastructure fees, which would noiuially be used to pay for affordable housing. 2 A good of example of what the 20% could be used for is Independence Plaza, which is what was used to pay for this structure. Regarding the 39 units, there would be $2 million from the Catellus' land sales, which is money that would come to the City to be reinvested in redeveloping the base. The $2.7 million would be for inclusionary fees. Inclusionary fees are normally used for home ownership opportunities for people in Alameda. There is a great demand for workforce housing in the City. The demolition of East Housing has been voiced by advocates of workforce housing. To make this swap we are spending an awful lot of money, which would normally provide for future workforce housing. Member Johnson expressed this (MOU) is as a result of a series of negotiations which the City, ARRA and other entities have been involved with. It was at the request that changes be made to serve our goals and the people of the collaborative, better than the original plan. This puts in place what we authorized staff to go forward on. We benefit, the Homeless Collaborative benefits, new housing will be built and it serves the interest of many people. Member Johnson stated she intends to support the plan. Member Daysog stated that in terms of the whole conundrum of workforce housing in the City of Alameda, is that we are talking about a population who are in need of affordable housing, but whose incomes are a little above of what we want to constitute low income and even moderate income. There are few available workforce funds that help these families. When we are talking about workforce housing, we are not talking about low income or moderate income in California or by HUD. Even if we wanted to use the low income 20% set aside income at Alameda Point which Member Kerr spoke about, there would be still some degree of difficulty in targeting workforce housing, which will require a completely different set of solutions. The 20% set aside is required by law for a redevelopment area to set aside of the property tax increment for affordable housing. The special circumstances involving Alameda Point according to AB3129, making the set aside dollar 20% for homeless families, qualifies as what is understood for low or very low income families. We are meeting the requirements narrowly defined by law and broadly defined by what the communities want. In terms of workforce housing, there are different solutions which will have to be looked at. Member Kerr voiced there are school teachers that fall into the low - income category because there are some school teachers who make only $31,000 a year. Almost all of the moderate - income people are people with jobs, who are not able to make enough to be under that moderate income. Moderate income is not people who are in poverty, but need some help in their housing needs. Moderate inclusionary fees will have an impact on our ability to provide housing for our workforce. Mayor Appezzato stated that maybe the City can take an action to accommodate the moderate income and we will look forward to doing that in the future. Member DeWitt referenced the portion of the MOU, which agreed to pay for public service fees. Organizations that were supported by HUD grants have paid public fees. Public services are used to pay for police, fire, sewer pipes and whatever else is needed to make an area grow. 3 Member DeWitt expressed his congratulations to the negotiators who were able to get a publicly supported organization to take from some of their money, to help pay for police and fire services in the area. It may not be the amount of needs just as property taxes does not pay for all the schools, but at least it shows the public they are willing to help pay their way through. Member DeWitt thanked the Homeless Collaborative for paying for some of these services and the taxpayers will be very satisfied with this. Mayor Appezzato indicated the Board and staff has been working on this since 1993. When base closure was announced, it was known that it was federal law and in 1994 this City took the lead in the federal law, the Community Assistance Act, which brought us the Homeless Collaborative, being able to deal with one group. The BRAG and Housing Sub - committee was created at this time. The BRAG, the ARRA and the City Council have come a long way together, getting to this point. A lot of the credit should go to Senator Feinstein's office for taking the lead on this. Hopefully it would be a success story that we can all be proud of. ROLL CALL VOTE City Council: Councilmembers Daysog, DeWitt, Johnson - Aye; Mayor Appezzato - Aye; Councilmember Kerr - Nay. Ayes - 4; Nayes -1. Abstentions - 0. Alameda Reuse and Redevelopment Authority: Members Daysog, DeWitt, Johnson - Aye; Chair Appezzato -Aye; Alternate Members Leonhardy, Ornelas and Friedman - Aye; Member Kerr - No. Ayes - 7; Nayes -1. Abstentions - 0. Community Improvement Commission: Commissioners Daysog, DeWitt, Johnson - Aye; Mayor Appezzato - Aye; Commissioners Member Kerr - Nay. Ayes - 4; Nayes -1. Abstentions - 0. Housing Authority Board of Commissioners: Commissioners Daysog, DeWitt, Johnson - Aye; Mayor Appezzato - Aye; Commissioners Kerr - Nay. Ayes - 4; Nayes -1. Abstentions - 0. ADJOURNMENT The meeting was adjourned at 6:25 p.m. Respectfully, q Luretia Akil ARRA Secretary 4 APPROVED MINUTES OF THE SPECIAL JOINT MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY AND THE COMMUNITY IMPROVEMENT COMMISSION Wednesday, October 6, 1999 Wednesday, October 6, 1999 The meeting convened at 6:25 with Chair Appezzato presiding. PUBLIC PARTICIPATION There were no speakers for this item. ROLL CALL AGENDA ITEM 1. Recommendation to approve Acquisition Agreement between Alameda Reuse and Redevelopment Authority and the Community Improvement Commission of the City of Alameda for purchase of Affordable Housing Covenant for 30 residential units in Bachelor Officers' Quarters. Alternate Member Leonhardy moved approval of the recommendation. Motion was seconded by Alternate Member Friedman. Motion passed by the following voice votes: Ayes - 11; Nayes - 2. Abstentions - 0. Discussion Member DeWitt asked was the proposed use for this property for senior citizens or a convalescent facility? Deputy City Manager David Berger responded the proposed use was for essentially both. Staff has been in discussion with the Alameda Medial Group about an assisted living facility. Member DeWitt asked if we are taking this action to allow for that? Deputy Berger responded that it would be consistent with that, although it would not be compatible with that kind of use. 1 Member DeWitt asked if we are required to take this action because it dovetails with the previous discussion on the previous action that we have taken? Assistant Attorney Terri Highsmith responded that this action will provide an additional 30 affordable units that the CIC can count towards its inclusionary housing requirement in the APIP. The price for the additional 30 units, should they be developed within 5 years, is approximately $10,000 per affordable unit, for a total price of the $310,000. Under the acquisition agreement, the CIC would pay from the BWIP, 20% set aside funds of $310,000 for the purchase of the covenant to provide these 30 units. That payment would be to the ARRA. Once the ARRA has the money, it intends to use the money to remove the property interest that Operation Dignity has over at the Bachelor Officers' Quarters. Member DeWitt responded he remembered and thanked Attorney Highsmith. ROLL CALL VOTE Alameda Reuse and Redevelopment Authority: Members Daysog, DeWitt, Johnson - Aye; Chair Appezzato -Aye; Alternate Members Leonhardy, Ornelas and Friedman - Aye; Member Kerr - No. Ayes - 7; Nayes -1. Abstentions - 0. Community Improvement Commission: Commissioners Daysog, DeWitt, Johnson - Aye; Mayor Appezzato - Aye; Commissioner Kerr - Nay. Ayes - 4; Nayes -1. Abstentions - 0. ADJOURNMENT The meeting was adjourned at 6:33 p.m. Respectfully, (7-------.) cretia Akil ARRA Secretary 2 Alameda Reuse and Redevelopment Authority Interoffice Memorandum October 20, 1999 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Report recommending the appropriation of $2.4 million grant funds awarded from the Economic Development Administration (EDA) Background: At the September 2, 1998 ARRA Governing Body meeting, the ARRA approved the funding proposal to be submitted to the Economic Development Administration (EDA) for 1999. In March 1999, the ARRA was invited to apply for $1.7 million grant funds from EDA. On September 29, 1999, the ARRA was awarded $2.4 million for building and water system upgrades at Alameda Point. Discussion: The ARRA will use the grant funds for building upgrades at Alameda Point. This use for the funds is essential because as the property upgrades are subsidized through federal funds, more building become available for leasing, resulting in increased revenue. The water system upgrades funded by this project will bring leased facilities up to state health and safety standards. The water system upgrades are a portion of the Phase I repairs needed in order for East Bay Municipal Utilities District (EBMUD) to take over the system. The funds will be distributed in the following manner: Building Renovations $1,200,000 Water System Upgrades L200,000 TOTAL $2,400,000 Fiscal Impact: Revenue from the government is $1.8 million. Bond proceeds and tenant contributions will be used to provide the $600,000 of matching funds. Recommendation: It is recommended that the ARRA Governing Body appropriate the $2.4 million in grant funds from the Economic Development Administration for building and water system upgrades. Respectfully submitted, David A. Berger Deputy City Manager Community and Economic Development By: Nanette Banks Administrative Management Analyst Attachment: EDA Award letter H: \STAFF- RE.PTS\EDAAPPR. WPD SEP 2 9 1999 Executive Director Alameda Reuse and Redevelopment Authority 950 West Mall Square, Building #1 Alameda, CA 94501 Dear Sir: U.S. DEPARTMENT OF COMMERCE Economic Development Administration Jackson Federal Building, Room 1856 915 Second Avenue Seattle, Washington 98174 Fax: (206) 220 -7669 (206) 220 -7660 In reply refer to: Award No. 07 -01- 03698.02 We are pleased to inform you that the Economic Development Administration (EDA) has approved a Financial Assistance Award in an amount not to exceed $1,800,000 in response to your application for federal assistance for continued renovation of Naval Air Station buildings for civilian use. The total project cost is $2,400,000 which is based on the line item estimates contained in Attachment No. 1. Enclosed are three signed copies of the Financial Assistance Award. Your agreement to the terms and conditions of the award should be indicated by the signature of your principal official on all three of the signed copies of the Financial Assistance Award. Two of the executed copies should be returned to the Director, Seattle Regional Office, Economic Development Administration, Jackson Federal Building, Room 1856, 915 Second Avenue, Seattle, WA. 98174. You are cautioned not to make any commitments in reliance on this award, nor to enter into negotiations relative hereto, until you have carefully reviewed the terms and conditions and have determined that you are in compliance or that you can comply therewith. Any commitments or undertakings entered into prior to obtaining the approval of the Government in accordance with its regulations and requirements will be at your own risk. Sincerely, eonard Smith egional Director Enclosures Alameda Reuse and Redevelopment Authority Interoffice Memorandum October 21, 1999 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manag SUBJ: Report recommending approval of the recommended priorities for the ARRA's 2000 grant application to the Economic Development Administration Background: Currently , the Alameda Reuse and Redevelopment Authority (ARRA) has three construction grants from the Economic Development Authority (EDA) and one grant for the design and engineering of Tinker Avenue. EDA Title IX Base Conversion funds are designed to assist communities with closing military bases in funding infrastructure improvements and expanding economic development opportunities. Discussion: In order to prepare for the new federal fiscal year EDA funding cycle, ARRA, City and Alameda Power and Telecom (AP &T) staff were assembled to make a recommendation regarding the funding priorities. The ARRA has been invited to apply for $1.5 million in funds for the next year. When the required matching funds are added, the total project cost is $2 million. Tinker -Tynan Extension Project $1.1 million The Tinker Avenue Extension project is a critical part of the FISC development. Currently the ARRA is funded by EDA for design and engineering work on this project. These funds will be used for right -of -way acquisition and environmental analysis associated with this roadwork. This grant will be managed by the City Public Works Department. Pier 3 Electrical System $500, 000 This AP &T will replace the electrical distribution system currently providing service to the MARAD ships and the Hornet. This system is in much need of repair. Relocation of Existing Power Line in East Housing $400, 000 In order to accommodate future development, a power line located east of Main street but running through the east housing property needs to be relocated to Main Street. This is also an AP &T recommended priority project. NAS Building Upgrades $400, 000 As previously mentioned, the ARRA has received three previous awards for building upgrades and renovations. These funds will be used to replace a roof on Building 8. If the funds to do the east housing power line relocation are provided through another source or because of design decisions no longer needed, then those funds will be used for building upgrades. Honorable Members of the Alameda Reuse and Redevelopment Authority October 20, 1999 Page 2 Fiscal Impact: EDA requires a 25% match for all of its grant awards. Projects related to the FISC /Catellus project will be matched with bond proceeds from that project. Projects involving Alameda Power and Telecom will be matched with funds from AP &T. Building Renovation matching funds will be provided by tenants. Recommendation: It is recommended that the ARRA support the proposed list of priorities developed by the ARRA, City and (AP &T) staffs, and authorize the Deputy City Manager to work with the various entities to submit pre - applications to EDA this fall. Respectfully submitted, David A. Berger Deputy City Manager Community and Economic Development By: Nanette Banks Administrative Management Analyst H:ISTAFF- RE.PTS\EDA2000. WPD Alameda Reuse and Redevelopment Authority Interoffice Memorandum October 27, 1999 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Report recommending the amendment of the Standards of Reasonableness to reflect recent ARRA Governing Board Action related to Economic Development Allocation to the Alameda Point Collaborative Background: As required by the federal Base Closure and Community Redevelopment and Homeless Assistance Act of 1994, the ARRA worked with Alameda County Housing and Community Development and a group of homeless services providers, identified as the Alameda County Homeless Providers Base Conversion Collaborative now called the Alameda Point Collaborative (Homeless Collaborative), to determine a fair share of housing and commercial space at NAS Alameda to accommodate the homeless. This accommodation of the homeless was reflected in the Community Reuse Plan which was unanimously approved by the ARRA board in January 1996 and subsequently approved by the United States Department of Housing and Urban Development (HUD, again, as required by federal law). The reasonable usage of facilities for and by the homeless was negotiated by representatives designated by the ARRA and the Homeless Collaborative and summarized in a document called the Standards of Reasonableness (SOR). The SOR were adopted by the ARRA Governing Body on May 3, 1995 and included firm numbers of available family housing units, barrack units, and buildings for economic development use, as well as, job creation and financing goals. At the October 6, 1999 Special ARRA Meeting, the ARRA Governing Body amended the SOR to reflect the revised Homeless Accommodation as a result of the disposition of the 97 east housing units and the elimination of 125 barrack units. Discussion: The action being proposed to the ARRA Governing Board for the November 3, 1999 meeting results from the action taken at the regular ARRA meeting also held on October 6, 1999. At that meeting, the ARRA approved the change in use for Building 101 and allowed for Building 92 to be used as the Collaborative warehouse location. In addition, the Collaborative will be using Building 92 for one of its special purpose industry opportunities given to them in the SOR. In exchange, the Collaborative relinquished its entitlement to Building 91 and agreed to accommodate any request by the Food Bank in Building 92. Attachment 1 explains the original, revised and proposed new revisions of the SOR. This action will eliminate inconsistency in documents related to the Homeless Accommodation and officially document the ARRA and Collaborative agreed upon conditions for the change in uses for Buildings 92 and 101. An amendment to the SOR will be prepared for the signature of the Executive Director consistent with the changes summarized in Attachment 1. Fiscal Impact: None. Honorable Members of the Alameda Reuse and Redevelopment Authority October 27, 1999 Page 2 Recommendation: It is recommended that the ARRA Governing Body authorize the Executive Director to execute an amendment to the Standards of Reasonableness with the Alameda Point Collaborative to reflect changes related to Buildings 91, 92 and 101, consistent with the summary in Attachment 1. DB /nab /la Respectfully submitted, David A. Berger Deputy City Manager Community and Economic Development By: • Pecoctia- Nanette Banks Administrative Management Analyst Attachment: Summary of the original, revised and proposed new revisions of the Standards of Reasonableness C:\M WARD\ MENSLEY\ ARRA \STAFFREP \1999\SORAMEND.WPD Attachment 1 a? .0 c4 a, a 0 too 0 0 z r a dam+ LCi E E Proposed New Revisions of the Standards of Reasonableness Same as original 75 Units Same as original Same as original (one of the uses will be satisfied in Building 92, the original building, 91 will be permanently removed from the entitlement) Same as original Same as original 89,000 sq. ft. satisfied in building 92, with or without the Alameda County Food Bank Revised Standards of Reasonableness Same as original (28 Operation Dignity units can be used as group living units or family) Same as original Same as original Same as original Same as original Same as original Original Standards of Reasonableness 186 Units 200 Units CS" cn 0 0 0 k N 2 opportunities 2 opportunities 2 opportunities 150,000 sq. ft. If the Alameda County Community 150,000 sq. ft. If the Alameda County Community Food Bank is included; 75,000 sq. ft. without the Food Bank. Use /Activity Family Housing Barracks Housing Office /Classroom Special Purpose Industry Institutional Recreation/Retail Warehouse /General Purpose Industrial Alameda Reuse and Redevelopment Authority Interoffice Memorandum October 26, 1999 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Report and recommendation from the Deputy City Manager to authorize the Executive Director to execute a ten (10) year lease with extension and purchase options on Hangar 40 with Bladium, Inc. Background Bladium, Inc. wishes to develop a recreational sports facility in the 103,000 square foot Hangar 40. The facility will offer indoor roller hockey, soccer, volleyball, rock climbing, basketball, a fitness center and cafe. Bladium developed and operates a highly successful sports club in an airplane hangar at the former Stapleton International Airport in Denver and has a smaller operation, devoted exclusively to roller hockey and soccer, in the Mission Bay area of San Francisco. Securing a permanent location is essential to Bladium's marketing and business plan. For this reason, they wish to enter into a ten (10) year lease with options to extend the lease and purchase the property. Since the proposed lease term exceeds seven (7) years and includes a purchase option, the agreements must be approved by the ARRA Governing Board. On October 25, 1999 the Alameda Planning Board approved an interim use permit for Bladium under the Alameda Point Interim Leasing Program. Discussion Bladium was selected following evaluation of proposals from four different companies who were concurrently bidding to lease Hangar 40. The selection committee determined that Bladium's proposal offered the best combination of economic terms, public amenities, experience and consistency with the Alameda Point Reuse Plan. The gross rental revenue generated by this lease over the ten -year lease term will be approximately $4.1 million. Bladium intends to employ about 80 people of which 40 will be full -time personnel. As indicated above, the Bladium lease will include an option -to- purchase provision. This provision may be exercised no earlier than the start of year five of the lease term and is subject to the property being conveyed to the ARRA and removed from the Tidelands Trust. The sales price of the property will be the fair market value at the time of sale established through independent appraisal. The purchase option is consistent with the approved Alameda Point Financing Plan which calls for upgrading and retaining Hangar 40 for long -term reuse. Bladium's proposed recreational use is one of several uses designated for this property in the Community Reuse Plan and this building is identified for retention as an historic resource. The purchase option is similar to the provision included in the AVTS lease recently approved by the ARRA Board and City Council. Honorable Members of the Alameda Reuse and Redevelopment Authority October 26, 1999 Page 2 Fiscal Impact The cost of the building shell improvements needed to bring Hangar 40 into code compliance is estimated at approximately $975,000. This is consistent with the costs recently experienced in upgrading hangars 23 and 39. Bladium will front the cost of these improvements and be reimbursed through rent rebates, at an interest rate equal to their cost of funds, during the first five years of the lease term. This reimbursement will reduce ARRA's net revenue to approximately $3.0 million during the first ten years of the lease term. Bladium intends to spend an additional $1.7 million in non - reimbursable funds for building improvements necessary for their business. Recommendation It is recommended that the ARRA Board authorize the Executive Director to execute a ten (10) year lease with extension and purchase options on Hangar 40 with Bladium, Inc. Respectfully submitted, David A. Berger Deputy _'ty Manager Corm and Economic Development By: Ed Levine Facilities Manager DAB/EL /la Correspondence / Miscellaneous ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY LEASING STATUS REPORT - November 1999 119.xls Signed Leases & Licenses Term Building # Building Sq. Ft. 1 ACET (Environmental Tech. Incubator) long term 7 15,550 2 AC Homet Foundation long term Pier 3 3 Alameda Point Storage (Mini Storage) long term Near Bldg.530 4 Alameda Unified School District long term 258 12,430 5 Altamont Tech. (Tech. Testing) long term 25 18,000 6 Audio Video Technical Services long term 22 66,000 7 Antiques by the Bay (Collectibles Faire) long term tarmac & 405 4,880 8 Bay Ship & Yacht (Ship Repair) long term Bidg 2 FISC 2,700 9 Big Whites (Housing Units) long term Various 10 Bobac (Warehouse) long term Bldg 2 FISC 11 Bureau of Electricity (Storage Yard) long term at FISC 12 CALSTART (Electric Vehicle Incubator) long term 20 66,600 13 CALSTART (Test Track) long term 14 Cellular One (Cell Site) long term - 1,400 15 City Garage Carstar (Vehicle Incubator) long term 24 26,927 16 City of Alameda (Dog Run Park) long term 17 City of Alameda (Ferry Terminal Parking) long term 18 City of Alameda (Gym & Pool) long term 76 &134 58,450 19 City of Alameda (O'Ciub) long term 60 29,550 20 City of Alameda (Police Dept.) long term 494 2,850 21 City of Alameda (Public Works) long term 397 17,000 22 City of Alameda (Soccer Field) long term 23 City of Alameda (Tennis Courts) long term 24 Container Storage (Cans) long term 42,000 25 CyberTran International (Test Track) short term 26 Delphi Productions (Exhibit Displays) long term 39 110,000 27 Delphi Productions (Exhibit Displays) long term 117 32,000 28 Dignity Housing (Homeless Coll.) long term 809,etc. 4,400 29 Door Christian Fellowship Church long term 564 8,600 30 Dunavant of California (Storage) long term BIdg.2 FISC 170,000 31 Emerg. Svcs. Network (Homeless Co!!.) long term 613 4,600 32 Forem Metal Manufacturing Forty Plus (Career Counseling) long term long term 114 90 20,000 4,500 33 34 Fribel Internat'l. (Concrete Statuary) long term 98 8,507 35 General Svcs. Admin. (Gov't.) long temm 169 86,300 36 Home Auto Repair long term 459 11,500 37 IWA Engineers (Steel Fabrication) long term 47,177 38 Jim Bustos Plumbing long term 113 13,115 39 Manex Entertainment long term 612 4,000 40 Manex Entertainment long term 13 34,540 41 Maritime Administration long term Piers 1,2,3, 42 Maritime Administration long term 168 117,419 43 Marine Sanitation long term 611 1,000 44 Navigator Systems (Fumiture Mfg.) long term 14 31,400 45 Nelson's Marine /Power Engr. (Boat Svcs.) long term 166 47,434 46 Nelson's Marine (Boat Storage) long term 167 & piers 55,450 47 Nelson's Marine (Boat Svcs.) long term 66 28,542 48 Operation Dignity (Homeless) long term 816,etc. 49 Pacific Fine Food, Inc. (Food Preparation) long term 42 3,000 50 Piedmont Soccer Fdn. 1 year soccer field 51 Port Distribution Warehouse long term 117 22,000 52 Puglia Engr. (Ship Repair) long term 67 14,000 53 Quality Assured Products (valve Mfgr.) long term 21 66,000 54 Resources for Comm. Dev. (Homeless) long term misc. 55 Richard Miller Photography long term 621 5,770 56 San Leandro Women's Shelter long term 531,etc. 28,080 57 Simmba Systems (Records Storage) long term 9 92,817 58 Tower Aviation long term 530 82,250 59 Trident 3M Services (Port Mgmt.) long term 15 16,603 60 United Indian Nations (Homeless Coll.) long term CPO units 2,400 61 University Avenue Housing (Homeless Coll.) long term 62 Water, Caldwell Assoc. (Consultant) long term 115 2,200 63 West Coast Seaworks (Ship Repair) long term 43 10,500 64 Woodmasters (Cabinetry) long term 44 5,100 65 Xebra Motors (Electric Vehicles) 1 year 25 18,000 NO. OF PROPERTIES CURRENTLY OCCUPIED 65 OCCUPIED BUILDING SQUARE FOOTAGE 1,573,541 CURRENT EMPLOYMENT 1,600 PROJECTED FUTURE EMPLOYMENT 2,050 119.xls