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2001-02-27 ARRA PacketAGENDA (Revised) Special Meeting of the Governing Body of the Alameda Reuse and Redevelopment Authority * * * * * * ** Alameda City Hall Conference Room 360, 3rd Floor 2263 Santa Clara Avenue Alameda, CA 94501 1. ROLL CALL Tuesday, February 27, 2001 Meeting will begin at 5:00 p.m. City Hall will open at 4:45 p.m. 2. Public Comment on Agenda Items Only. Anyone wishing to address the Board on agenda items only, may speak for a maximum of 3 minutes per item. 3. CLOSED SESSION OF THE ARRA TO CONSIDER CONFERENCE WITH REAL PROPERTY NEGOTIATOR 5:00 p.m. 3 -A. Property: Negotiating parties: Under negotiation: 3 -B. Property: Negotiating parties: Under negotiation: Alameda Point ARRA, U.S. Navy, and the Master Developer Price and Terms Alameda Point ARRA and American International Group Company and Indian Harbor Insurance Company /ECS, Inc. Price and Terms Conference with Real Property Negotiator pursuant to Gov. Code Section 54956.8 4. Announcement of Action Taken in Closed Session, if any. Adjournment Notes: • Sign language interpreters will be available on request. Please contact Lucretia Akil, ARRA Secretary, 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. 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, February 7, 2001 Meeting will begin at 5:30 p.m. City Hall will open at 5:15 p.m. 1. ROLL CALL 2. CONSENT CALENDAR 2 -A. Approval of the minutes of the regular meeting of January 3, 2001. 2 -B. Report and recommendation from the Finance Director to approve the annual audit for fiscal year 1999 -2000. 3. ACTION ITEMS 3 -A. Report from the Development Services Director recommending the approval of a lease amendment with the Alameda Point Collaborative for a portion of Building 92 to include the special purpose industry use of special events job training. 3 -B. Review of report by the Development Services Director regarding "rent subsidies" for the Hornet Foundation and Alameda Center for Environmental Technologies (ACET) (requested by Boardmember Kerr; information item only - -no action to be taken). 3 -C. Review of report by the Development Services Director on the status of efforts by the Alameda Naval Air Museum Board of Directors to raise construction funds required to improve and occupy Hangar 41 (requested by Boardmember Kerr; information item only - -no action to be taken). 4. ORAL REPORTS 4 -A. Oral report from APAC. ARRA Agenda - February 7, 2001 Page 2 5. 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.) 6. COMMUNICATIONS FROM THE GOVERNING BODY 7. ADJOURNMENT This meeting will be simultaneously cablecast on channel 15. The next regular ARRA meeting is scheduled for Wednesday, March 7, 2001. 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 ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, January 3, 2001 The meeting convened at 5:35 p.m. with Chair Appezzato presiding. 1. ROLL CALL Present: Ralph Appezzato, Mayor, City of Alameda Albert DeWitt, Councilmember, City of Alameda Beverly Johnson, Councilmember, City of Alameda Barbara Kerr, Councilmember, City of Alameda Absent: Tony Daysog, Councilmember, City of Alameda 2. CONSENT CALENDAR 2 -A. Approval of the minutes of the special meeting of November 14, 2000. 2 -B. Recommendation from the Development Services Director to hire an economic development consultant to assist in the selection of a master developer. 2 -C. Approval of a change of Lessee for Building 613 from Emergency Services Network to the Alameda Point Collaborative. 2 -D. APAC recommendation to appoint alternates for the community representatives on the Master Developer Selection Team. Member Johnson moved approval of the Consent Calendar. The motion was seconded by Member DeWitt and passed by the following voice vote: Ayes - 4. Noes - 0. Abstentions - 0. 3. ACTION ITEMS 3 -A. Report and recommendation from the Director of Development Services to authorize the Executive Director to execute a five (5) year lease with a five (5) year renewal option on Buildings 18 and 525 with Auctions by the Bay, Inc. 1 The public hearing was opened. Allan Michaan, Auctions by the Bay, Inc. stated they have succeeded in making Alameda a very well known antiquing destination. Mr. Michaan stated they will be leasing Building 18, the historic theater and intend to use it as an auction sales room once a month. Concurrently, they will lease Building 525 which is the bowling alley. Renovations will include removing the lanes and making it a 23,000 square foot display room for the merchandise that will be sold. The rest of the time the theater building will be available for other uses such as meetings, seminars, corporate events and whatever other uses that are permitted within the building. Mr. Michaan stated their use permit requires them to show four screenings per month for the City of Alameda. They will not be first run films, but older movies. The auction house will also be operated as a high -end and prestigious operation. The auctions will be conducted the Saturday following each Sunday's antique fair. There are approximately 6,000 people who come to the antique fair, which will keep increasing. There are almost 2,000 dealers in the database who will be active participants of the buying and selling of antiques. These auctions will also generate sales tax, which will be benefit the City. The public hearing was closed for Authority Discussion. Chair Appezzato asked Mr. Michaan if they will do appraisals of these items? Mr. Michaan responded yes they will and they are in the process of interviewing perspective employees for the auction house to include regular appraisal seminars. Chair Appezzato asked Mr. Michaan will they sell things on consignment that are antiques? Mr. Michaan responded yes they will. Member Johnson asked is the bowling alley in the vicinity of the theater? Mr. Michaan responded it is next door, separated by approximately 35 feet of parking lot. Member Johnson asked Mr. Michaan is there a limitation in their lease that is restricting them to a once a month auction or is that their choice? Mr. Michaan responded that once a month is quite a bit. As they grow and if they can find collateral uses, they will hold additional auctions. Member Johnson asked are there any restrictions on the bowling alley or any other restrictions in the lease agreement which may prohibit their business from expanding? Mr. Michaan responded no there are none. Member Johnson stated Antiques by the Bay presence has had a very positive effect on the community, especially Alameda Point. 2 David Berger, Assistant City Manager, Community and Economic Development stated this use has received unanimous approval by the Planning Board. Mr. Berger asked Mr. Michaan to further describe the Hangar which they will be leasing as part of their business. Mr. Michaan stated they are in the process of converting Building 25 into an exhibition type of hall. Building 25 which is 45,000 square feet was one of the newer buildings on the base built for corrosion control of air craft. It has three bays and a sophisticated air - handling dust processing system within it. There is an existing lease agreement and they hope to satisfy the building and fire department requirements for public assembly. Mr. Michaan stated they are creating an indoor venue which will be an expansion of the outdoor antique fair. There will be approximately 250 indoor vendors of antiques which will be there every time there is an antique fair. These vendors will bring in higher quality and more expensive merchandise. In the event that it rains, there will still be an antique show with this indoor exhibition. Mr. Michaan further stated this will also increase the price into the antique fair and since the City shares in 20% of the revenue off the top, there will be a significant increase in rent. Member Johnson moved approval of the recommendation. The motion was seconded by Member DeWitt and passed by the following voice vote: Ayes - 4; Noes - 0; Abstentions - 0. 4. ORAL REPORTS 4 -A. Oral report from APAC. Lee Perez, Chaiiinan stated they appreciated the actions of staff and members of the Board for approving their Consent Calendar item. 5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) None. 6. COMMUNICATIONS FROM THE GOVERNING BODY None. 7. ADJOURNMENT The meeting was adjourned at 5:50 p.m. Respectfully, ucretia Akil ARRA Secretary 3 City of Alameda Inter-department Memorandum TO: Chair and Members of the Board of the Alameda Reuse and Redevelopment Authority FROM: Zenda James Finance Director DATE: January 25, 2001 SUBJECT: TRANSMITTAL OF: 1) Alameda Reuse and Redevelopment Authority General Purpose Financial Statements for the Year ended June 30, 2000 2) Internal Control Memorandum with Our Response Transmitted herewith are the above-referenced documents for your review and acceptance. Discussion/Analysis General Purpose Financial Statements These statements are for period ending June 30, 2000. The ARRA approved the change in its reporting period to coincide with the City's fiscal year-end of June 30; therefore, this report will cover the period November 1, 1999 through June 30, 2000. Internal Control Memorandum The auditors have made recommendations on internal controls relating to timing of deposits for rent receipts for housing units and our contractor has implemented the recommended procedures. Budget/Financial Impacts There is no impact on the City of Alameda's General Fund. It is important to note that the funds segregated in ARRA's books under "General Fund" are essentially lease revenues and are used primarily for the agency's reuse efforts. Chair and Members of the Board of January 25, 2001 the Alameda Reuse and Redevelopment Authority Page Two Funds remaining in the Capital Projects Account at June 30, 2000 are primarily bond proceeds and earmarked for capital projects within the project area. Recommendation The reports are recommended for approval. The auditors, Maze and Associates, and staff will be available to answer questions. Respectfully submitted, Zenda James Finance Director Attachment (ARRA Governing Body - only) cc: Kevin Kearney, City Auditor Maria Giannelli, Maze & Associates Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 31, 2001 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: Doug Yount, Development Services Director SUBJ: Report from the Development Services Director Recommending the Approval of a Lease Amendment with the Alameda Point Collaborative for a Portion of Building 92 to Include the Special Purpose Industry Use of Special Events Job Training Background In October 1999, the ARRA Governing Body approved the change in use for Buildings 101 and 92 for leases with the Alameda Point Collaborative. As a result, the Collaborative relinquished its entitlement to Building 91, which was to be used by Practical Recovery Training Program Inc. (PRTC Inc.), for operation of a "panelized" house building system; Building 101 would be used for an Alameda Point Community Center; and Building 92 was no longer to be used as a Food Bank solely, but instead would house all of the Collaborative warehouse uses and retain the special purpose /industry designation given under the Standards of Reasonableness for Building 91. See Attachment 1, which summarizes the new accommodation under the Standards of Reasonableness. Discussion The Collaborative would like to exercise its one time only substitution privilege for the special purpose /industry designation for Building 92. Rather than PRTC using the space for construction of the panelized house building, the Collaborative has created a new job training program with DaVinci Fusion, an event production company. Under this new job training program, DaVinci Fusion is partnering with Operation Dignity to train Collaborative residents, in particular homeless veterans, for jobs in the special event industry. The industry includes the disciplines in lighting, staging, scenery, sound production management, computer design and draperies. Operation Dignity and the Collaborative will screen residents for their aptitude for developing skills in the special event industry. Then small classes will be held by Da Vinci Fusion with the residents. Residents will be trained in staging areas within the building. After completion of training, residents will be assisted in finding jobs within the industry by DaVinci. Also attached for your review are letters supporting the program and DaVinci Fusion's past work. The Collaborative will charge a rental fee to the DaVinci Fusion company for storage only, not for the classroom space. Unlike the previous proposal for Building 607, this program is consistent with the original use for Building 92. The ARRA Governing Body has already approved the revenue generating uses for the building and most of the building has already been designated warehouse space for the Collaborative. Honorable Members of the Alameda Reuse and Redevelopment Authority January 31, 2001 Page 2 Fiscal Impact None. Recommendation It is recommended that the ARRA Governing Body approve the amendment of the lease with the Alameda Point Collaborative for a portion of Building 92 for Special Events Job Training. DB /nab /la Respectfully s Doug Yount Development Services 'rector Nanette Banks Business & Special Project Manager Attachments: Summary Table of the Standards of Reasonableness Letters of Support C: \LAKI L\ARRA \STAF F REP\200I \N E W 92. W PD Attachment 1 Summary of the Original and Revised Standards of Reasonableness :% .S.; v .: : . 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Same as original Special Purpose Industry 2 opportunities Same as original (one of the uses will be satisfied in Building 92, the original building, 91 will be permanently removed from the entitlement) Institutional 2 opportunities Same as original Recreation/Retail 2 opportunities Same as original Warehouse /General Purpose Industrial 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. 89,000 sq. ft. satisfied in building 92, with or without the Alameda County Food Bank C:\ LAKIL \ARRA \STAFFREP\20011NEW92.W PD HORNET Mr. Solomon Rosenzweig Da Vinci Fusion Inc. 1077 Howard St. San Francisco, Ca. 94103 November 22, 2000 Dear Mr. Rosenzweig, As the Holidays approach, I wanted to take a moment to review where we've come from on the Hornet and where we are today. Time goes by so quickly and I want to be sure that I've taken the opportunity to thank you and DaVinci Fusion for all your efforts in snaking the special events part of The Homer Museum grow and prosper. When we first conceived of bringing the Hornet to Alameda, you made us aware of the importance of doing special events of the ship. You were so right. Through DaVinci Fusion s' consul and good efforts, you have helped and guided and marketed and really gone the extra mile for us. Your help and the efforts of Bob Walker have made a tremendous difference in our operation and facilitated our abilities to bring attractive events to the Hornet. We look forward to 2001 and beyond to building the l.lomet experience. With your continued help, we look to improving out t onnibutiott to the quality of life in Alameda County while recognizing the significant place the hornet has in American history and its contribution to our country. On behalf of the Hornet Foundation and its board of directors, 1 look forward to our continued growth together, while remembering the Hornets place in history and honoring the men and women who served with her. Sincerely, Gerald LULZ President, Aircraft Carrier hornet Foundation Post Office Box 460 • Alameda, California 94501 • Telephone 510.521.8448 • Fax 510.521.8327 v,GE ©r KI:NTVIKLU CAMPUS INDIAN VALLKY cAYPU• SINCE 1.926 KENTEll?l.D, CA 94904 Mr. Solomon Rosenzweig Da Vinci Fusion 1077 Howard St. San Francisco, CA 94103 November 27, 2000 Dear Mr. Rosenzweig, I would like to take this opportunity to thank you for encouraging your employees to participate in community organizations such as the College of Marin Dance program. We have benefited from this policy through the services of your employee, Ernie Ernstrom. College of Marin presents a dance concert every semester, and, as you know, Ernie has been our technical director for a number of years. He has always been willing to "go the extra mile" for us to make things work, and has brought his own imagination to bear in adding to the creativity mix. Ernie is pleasant to work with and remains unruffled in the face of the stressful situations which are part and parcel of theater production. He is able to state clearly to our choreographers the technical possibilities and requirements of our theater and, at the same time, will adapt to their lighting and other design requests whenever it is feasible to do so. We consider ourselves fortunate to have Ernie as our technical director and hope we can continue this partnership in the future. And thank you again! KENTFIELD CAMPUS (415) 457 -8811 Sincerely, Catherine Sim. Director College of Marin Dance • INDIAN VALLEY CAMPUS (415) 8831 -2211 LUMENtgra4 October 29, 2000 Lumenography Phalle: S10- 769 -8905 1516 Sherman St Suite E Evart 509 - 479 -0967 Alameda Ca 94501 E-Inalessowlighting@horne.net www.lumenography.com Mr. Solomon Rosenzweig Da Vinci Fusion Inc. 1077 14oward St San Francisco, CA 94103 Dear Mr. Rosenzweig: 1 just wanted to let you know how much we appreciate your generosity in donating such a large amount of equipment for our show at Alice Arts Theatre. Without your help it would have been impossible for a small company like ours to produce Capacitor's Within Outer Spaces.. Your understanding and commitment to the arts is very much appreciated. Thank you for your donation of rental equipment and for encouraging your employees to volunteer their time. 1 wish that more businesses in the Bay Area could support the artistic community in the way Da Vinci Fusion does. If 1 can ever do anything to help you in your efforts, please don't' hesitate to call. Sincerely, Walter iden Lighting Designer TCAPACITOR November 2, 2000 Mr. Solomon Rosenzweig Da Vinci Fusion Inc 1077 Howard St San Francisco, CA 94103 Dear Mr. Rosenzweig: I want you to know that we would not have been able to make our show, Within Outer Spaces, such a success without your low cost equipment rental. Over 1000 people from Oakland got to enjoy a higher quality show due to your generous support. The lights you made available allowed us to experiment with a new aerial idea, the meteor machine, which describes the falling of meteorites. This way of popularizing astronomy in the theater has never been done before and we needed a chance to see it work. We hope this show leads some members of our community to pursue careers in astrophysics, dance, and music, if not simply broadening people's minds and experience. This has been our gift to Oakland, which you helped make a reality. Thank you. Sincerely, Jodi M. Lomask Artistic Director Capacitor 255 4th street. suite 402 oakiand, ca 94607 (510) 268 -9608 www.capscitor.org Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 30, 2001 To: Honorable Chairman and Members of the Alameda Reuse and Redevelopment Authority From: Doug Yount, Development Services Director Subj:, Background Review of Report by the Development Services Director Regarding "Rent Subsidies" for the Hornet Foundation and Alameda Center for Environmental Technologies (ACET) Since the start of leasing at Alameda Point discounted rents have been provided to support certain non- profit operations deemed to contribute to the overall success of the community's base reuse effort. Two of these tenants are the Alameda Center for Environmental Technology (ACET) and the Aircraft Carrier Hornet Foundation (ACHF). ACET is a business incubator established in 1994 to support the development and growth of start-up companies specializing in environmental technology. ACHF restored and operates the retired aircraft carrier Hornet for educational use and public events. In May 1997, ACET entered into a five year lease on the 15,500 sq.ft. Building 7. This building was formerly used by the Navy as a materials testing facility and is one of the most modern high -tech buildings available at Alameda Point. The Hornet's five year lease on the north side of Pier Three commenced in April 1998 and runs through 2003. Discussion The rental discounts offered to ACET and ACHF may be estimated by comparing their actual rents to assumed market rents which would have been charged other tenants. This is a relatively simple calculation for ACHF since the only other potential tenant for the north side of Pier 3 was the U.S. Maritime Administration ( MARAD). MARAD currently docks eleven (11) ready - reserve supply ships at Alameda Point and leases all available pier space, exclusive of the space reserved for the Hornet. If the Hornet was not at Alameda Point, it's probable that MARAD would dock another two ships on Pier 3 yielding approximately $816,000 more rent over five years than the amount paid by Hornet. The rental discount for ACET is somewhat more difficult to calculate since we do not know exactly what market rent would have been paid for Building 7 if it been leased to some other tenant. However, based on conservative estimates we project that the City would have netted approximately $1,100,000 more in rental revenue if Building 7 was leased to a "market- rate" tenant. The City has Honorable Chairman and Members of the Alameda Reuse and Redevelopment Authority January 30, 2001 Page 2 realized several important benefits from the presence of ACET and ACHF at Alameda Point which balance against these discounted rents. Hornet is now attracting almost 100,000 visitors per year. They offer the third largest indoor venue in the Bay Area and are attracting over 50 events per year (including five very large events - -each with 3,000- 4,0000 people -- and about six big band dances). Hornet also offers an educational program which attracts 15 -20 school tours per month from throughout the Bay Area. Their live- aboard program, which currently accommodates approximately 150 sea scouts per week, is expected to increase to over 400 scouts per week by 2002. Finally, as the primary focus of tourism to Alameda, Hornet is generating an ever increasing volume of economic activity for other businesses in the City. ACET's operation has also yielded important benefits. Their facility is fully occupied by nineteen client companies and ACET projects that incubator companies will create upwards to 800 new jobs during their five -year lease term. These "graduates" are prime candidates to lease expansion space in other buildings at Alameda Point or elsewhere in the City. Direct investment to the incubator companies, conservatively projected at $250 million over five years, will indirectly flow to products and services in Alameda. It is expected that ACET's extensive national and international business network will provide Alameda with high profile exposure and create a magnet for industry, technology, and investment. Fiscal/Budget Impact The above referenced rental discounts are reflected in the Alameda Point Business Plan. No further impacts are anticipated. Recommendation None, as this report is offered for informational purposes only. Respectfull Doug Youn nt Servic- Director DY /El /la By: Ed Levine Alameda Point Leasing & Property Manager C: \LAKIL\ARRA \STAFFREP\2001 \HORNET. W PD January 12, 2000 City of Alameda • California Ms. Barbara Baack, President/CEO Alameda Naval Air Museum 16148 Via Sonora San Lorenzo, CA. 94580 Dear Ms. Baack: The purpose of this letter is to confirm the ARRA's $100,000 challenge grant to ANAM for the museum use of Buildings 41 and 77. Release of the ARRA funds will be contingent on the following: 1. ANAM shall have obtained permits for upgrades to Building 41 and 77 in compliance with all applicable building codes. 2. ANAM shall have submitted written evidence of firm commitments for funding and/or pro bono work to cover the cost of all building upgrades. The City appreciates ANAM's continuing effort and commitment to establishing this important cultural resource at Alameda Point. Please contact Ed Levine at (510) 749 -5905 if you have any questions. Sinc ;7. / avid A. Berger Deputy City Manager Community and Economic Development DAB /EL /la cc: Mayor and City Council City Manager Assistant City Attorney Sandre Swanson, Chief of Staff for Congresswoman Barbara Lee Facilities Manager, Alameda Point Senior Management Analyst, Alameda Point Deputy City Manager — Alameda Point Caretaker Agreement 950 West Mall Square, Room 175 Alameda, California 94501 -7552 510 749 -5920 • Fax: 510 749 -5935 • TDD 510 522 -7538 Co Printed on Recycled Paper ANAM ASSETS AS OF 1 Oct 2000 Cash on hand $14,000 Gift shop inventory 500 Various permits and building fees 5,000 Insurance policies 2,000 EDA Grant (Matching) 100,000 Non demand loan from Keachies 200,000 Probono services VBN Architects 50,000 Schirmer Engineering 10,000 Hazardous waste survey 5,000 Pledge from Alameda contractor towards ADA bathrooms, est. 20,000 Potential house donor Potential additional federal funds 200,000 200,000 1 navy glider on loan $20,000 1 P2V -2 Neptune patrol bomber to be loaned 100.000 $321,500 85,000 400,000 120,000 34 Crystal Way Berkeley, California 94708 November 27, 1999 Alameda Naval Air Museum P.O. Box 1769 Alameda, California 94501 Re: Letter of Intent Dear Friends: On August 4, 1999, the Governing Body of the Alameda Reuse and Redevelopment Authority voted to grant the Museum a one-year lease at nominal cost for Hangar 41 at Alameda Point. To assist the Museum, we are willing to provide for its benefit a loan or other credit support of $200,000 maximum for the fire sprinkler and alarm upgrades, which comprise the major expense of preparing the hangar for Museum occupancy. Our goal is to help the Museum obtain at low cost the use of this multimillion dollar value facility for the direct benefit of the Community. We believe that our financial assistance to the Museum will serve as a catalyst for other sources of funds and community involvement that will result in a splendid and unique Naval Air Museum for all of the Bay Area to enjoy. Our financial support may be employed in one of two principal ways: as collateral for a low interest loan from a foundation or other organization which assists non-profits or as a direct loan at the minimum Federal interest rate, as required by IRS regulations. The first arrangement is preferable to us, as it would allow our funds to be left as they are presently invested. We are not requiring collateral, a guaranty, or any other credit support for this assistance. In any event, our offer of assistance is subject to final documentation of our financial support to the Museum and related documents (such as the lease and the fire sprinkler and alarm upgrade contracts, including selection of the contractors) satisfactory to us in our sole discretion. Please note that this letter is for the sole use and benefit of the Museum, and no other person or entity may rely upon it for any purpose. We look forward to working with you in helping to build an inspiring and successful Museum! Very truly yours, Grace Keachie Stephen Keachie Alameda Reuse and Redevelopment Authority Interoffice Memorandum February 1, 2001 To: Honorable Chairman and Members of the Alameda Reuse and Redevelopment Authority From: Doug Yount, Development Services Director Subj: Background Review of Report by the Development Services Director on the Status of Efforts by the Alameda Naval Air Museum Board of Directors to Raise Construction Funds Required to Improve and Occupy Hangar 41 At its August 1999 meeting, the ARRA Board directed staff to negotiate a one -year sublease with the Alameda Naval Air Museum (ANAM) for Hangar 41. A five -year sublease for adjacent Building 77 had been approved in October 1997. In agreeing to the Hangar 41 sublease, the ARRA Board accepted ANAM's contention that a signed agreement was essential to their effort to obtain firm commitments for grants, donations, and other resources needed to complete building code upgrades. In August 1999, ANAM had a cash reserve of about $8,000 and could show no firm commitments to fund the City's estimate of $533,000 to upgrade these buildings. Staff's April 14, 2000 status report to the ARRA indicated that lease negotiations with ANAM had stalled over several key issues, including payment of CAM fees, performance evaluation criteria, and ANAM's request that the City guarantee payment on a $200,000 loan from the Keachie family. (Staff rejected this guarantee, but offered a $100,000 capital challenge grant if ANAM submitted evidence that they had adequate funding and/or donated materials and labor commitments to complete building upgrades. A copy of the City's challenge grant letter is attached). On April 15, 2000, ANAM agreed to the staff's position on all outstanding issues and executed a one -year lease on Hangar 41. Discussion The Community Reuse Plan reserves Buildings 77 and 41 for use as a Naval Air Museum. However, the plan allows for alternative uses if a museum is not viable. A critical measure of the viability of museum use of Hangar 41 is ANAM's ability to obtain funding to upgrade the building for public occupancy. Unfortunately, to date ANAM has not been successful in securing firm commitments to fund the upgrades.. In a report dated October 1, 2000, ANAM showed a cash balance on hand of $14,000. This report indicated probono services received to date in the amount of $65,000 as well as possible grants or loans from government and private sources. These included possible federal funding for $200,000 and the promise of an unsecured loan for $200,000 from the Keachie family. (A copy of this report and the offer from the Keachie's is attached). However, to date ANAM has Honorable Chairman and Members of the Alameda Reuse and Redevelopment Authority February 1, 2001 Page 2 no binding commitment for either the EDA grant or the Keachie loan. ANAM's current financial condition is essentially the same as it was in August 1999. Despite having Hangar 41 under lease for almost ten months and exclusive rights to lease the building for over four years, ANAM has been unable to secure commitments to fund even a fraction of the total building upgrade costs. As discussed in previous staff reports, failure to put this building to productive use results in a substantial loss in rental revenue to the City. Fiscal/Budget Impact Fiscal consequences on the Alameda Point Business Plan related to committing Hangar 41 to an air museum use were addressed in the August 1999 ARRA staff report on this item. It is estimated that this building would generate $480,000 per year in rental revenues to the City if leased to a non- museum tenant. Recommendation None, as this is a status report on a sublease matter related to previous ARRA Board policy direction. Resp fully s Doug Y Dev By: Ed Levine Alameda Point Leasing & Property Manager ervices Director DY /El /la Attachments: Challenge Grant Letter ANAM Financial Report Letter of Intent from Keachie Family cc: Marilyn York, ANAM Board President C: \LAKIL\ARRA \STAFFREP\2001 \ANAM. W PD Correspondence / Miscellaneous Interim Leasing Status Report - February 2001 Building Sq. Ft. 0 0 0 0 u, 40,0001 0 0 0 0 0 CV 10(0 0 0 0 CO 1.... - 0 7,t to CO 27,6501 117,4191 0 0 0 0 0 0 31,4001 55,4501 2001 0 0 0 cro - r- 0 0 0 i Cc) T V. 66,6001) 22,0001 60,8001 40,0001 47,0001 14,0001 1 0 o 0 0 r. t', 0 0 - - 28,0801 0 o 10 i 0)4 e- I"- .,- O NO 0 to I,- 0) Ground Leasel Ground Leasel 0 o Cp. o 0 o 0 o 40,0001 0 o C N I N 0 o 0 .c- 65,0001 0 o T tfc 46,1331 0 0 ID 4 CO 0) 0 a .t.- 0) 0 (1) (0 .. 3 t.":. CV 4t tm S3 7 03 U) C = c0 170 North CV I- 1- 0 e- C CV CD CO 0) - Piers 1,2,3 00 C ,-- - (0 01 (1) <- e- D. a.. .5 N. CO N.- CO 624 CV CO CO CO (4) 4- 0 c 0 0 0. CeV t O 0 CD soccer field 117 East 118 West 170 South CO (0 r- along estuary' various units - CV CO 531,532,5331 0) CV 0) 40 CO 40 0) 01 Wharf] 40 various units various units 40 e- ., FISC 16 & Lot' 40 CV Bldg 2 FISC1 44 et e- e- 0 0) CO CO 0) CD 1- 0) 1)1 et Signed Leases & Licenses 'Housing Units (Big White /Ranch StylelTwnhse) 0 c __- 00 Jim Bustos Plumbing IJimex Corporation (Kitz Corporation Manex Entertainment IManex Entertainment ' Manex Entertainment 'Maritime Administration 'Maritime Administration (Warehouse /Office) 'Marine Sanitation IMMCE 'Navigator Systems (Fumiture Mfg.) _ 'Nelson's Marine (Boat Repair & Storage) Nelson's (subletting to other businesses) Nextel 'Operation Dignity (Homeless Collaborative) Orton Development Pacific Fine Food, Inc. (Food Preparation) Performance Multihull Piedmont Soccer Port Distribution & Warehousing Port Distribution & Warehousing Port Distribution & Warehousing Power Engineering Puglia Engr. (Ship Repair) RCD (Homeless Collaborative) Richard Miller Photography Rieder Structural Works (RSW, Inc.) San Leandro Shelter (Homeless Coliab) Silicon Venture Partners Simmba Systems (Records Storage) Studio 35 Trident Port Services Trident Management Trident Management United Indian Nations (Homeless Collaborative) University Avenue Housing Waters,Caidweli & Assoc. (Environ.Consultant) West Coast Bridge (License) West Coat Novelties West Coast Seaworks (Marine Construction) Woodmasters (Woodworkers) Forem Metal Manufacturing Forty Plus (Career Counseling) NO. OF EMPLOYEES NO. OF PROPERTIES CURRENTLY OCCUPIED OCCUPIED BUILDING SQUARE FOOTAGE 0) V* 0 .4- 0 04 ID CO AD et D 0)10 D ID 0.• 0 CO 0 0) 11 0 CD r- (0 OA CO el 03 .W in 133 to tO . tO O tO 0) tO 0 N. 0 N. 04 I, CO r. V r. (1) 0-, 10 I, r. o I+ o) t's c 03 - 03 CV CO 0) CO 0 0) CO (O 03 Ps CO 0) 03 CO O 0) 00 0) o, 0 .0 CD xt t- '03' CO et Building Sq. Ft.1 0 tf) tO LC> v- 32,0001 82,2501 130,0351 Ground Lease 89,0001 68,6501 0 0 0 csi 12,430 10,5501 0 00 CO 4 0 0 0 ui 0 0 0 ui CO 0 0 C-... oi 0 0 0 r... S. 104,0001 1000`014 66,6001) 0 0 0 co Ground Lease' g 0 r: V) o 0 "*. (.1 58,450 29,5501 0 tf) 03 csi 17,000 .. CV 0) co 01 42,0001 0 0 0 ci .4-. 0 0 0 ci .)- e- 0 0 0 ri 0) 0 0 MI Nr 0 0 (13. co 0 0 0 o N. 0 0 CD. 4 46,1331 0 0 ID 4 C.- 0 (l) o6 86,3001 0 0 V. t0 * on c :5 3 CO 1'.. 1 Pier 3 (0 CO 0) 0) 0 01 o r... (,- c,es 1 Near Bldg. 530 CV Cl) •t- 0 e- at FISC. 162 East CO 0) a CV 0) '0 CO 258 585 Tarmac & 405 527 West CV CV CV 0) CV 25 (Bay 1) 0 et Bldg 2 FISC 0 01 32, East Side Near Bldg. 3601 ..- along estuary' along estuary' OJ CV ID 76 &134 09 V' 0) et P. 0) CO east of Bldg 3601 west of O'Cub 24 - Bay 31 = M = >, . X CO 1... CO 01 CO CO CD r- CD CO 117 West' 103,105,809,8101 (0 t0 Bldg 2 FISC1 CO e- tO et e- e- 0 0) CO CO 0) CD 1- 0) 1)1 et 'Signed Leases & Licenses ACET (Environmental Tech. Incubator) IAC Homet Foundation Alameda Aerospace (Advanced Turbine Tech.) Alameda Aerospace (Tower Aviation) Alameda Naval Air Museum 'Alameda Point Storage (Mini Storage) Alameda Point Collaborative (Warehouse) 'Alameda Point Collaborative (Office, etc.) 'Alameda Power & Telecom (Storage Yard) 'Alameda Power & Telecom 'Alameda Power & Telecom 'Alameda Unified School District (Child Care Cntr) 'Alternatives in Action (HOME) 'Antiques by the Bay (Collectibles Faire) lApelon (formerly Lexical) 1AVTS dba: Creative Technology 'Bay Ship & Yacht (Ship Repair) 'Bay Ship & Yacht (Ship Repair) Bladium (Indoor Games) Bobac (Warehouse) CALSTART (Electric Vehicle Incubator)License Cametoid Cellular One (Cell Site) City of Alameda (Administration) ,City of Alameda (Dog Run Park) City of Alameda (Ferry Terminal Parking) City of Alameda (Fire Dept Training) City of Alameda (Gym & Pool) City of Alameda (O'Ciub) City of Alameda (Police Department) City of Alameda (Public Works storage) City of Alameda (Soccer Field) City of Alameda (Tennis Courts) Coach Specialties (formerly NB Industries) College of Alameda (License) Container Storage (Cans) CyberTran, International Delphi Productions (Exhibit Displays) Delphi Productions Dignity Housing (Homeless Coll.) Door Christian Fellowship Church ......... ... .... ___ Dunavant of California (Storage) Emerg. Svcs. Network (Office) Forem Metal Manufacturing Forty Plus (Career Counseling) Fribel Internat.!. (Concrete Statuary) Gen. Svcs. Admin. (Maritime Museum Storage) Home Auto Repair .0. 04 CO "7 11) 0) i•-■ CO 0) 0 Ir. e- .... N a-• CO a- *0 It- 0 ..... tO c• I, •e- CO 1... 0) v. 0 04 e- 04 N 04 01 04 V 04 0) N 10 04 0.- N 03 01 0) 04 C. 01 ....• CO 01 VI 0 0) V VI 11) V) 10 el i... 0) 0 0) 0) 01 0 'V <- V' ('4 •Ct 0) .0 o, 0 .0 CD xt t- '03' CO et TESTIMONY ALAMEDA CITY COUNSIL February 7, 2001 Wayne P. Ernstrom M.S.W. 4620A Blum Road Martinez CA 94553 Biographical Information Masters Degree in Social Work, University of Utah Graduate School of Social Work (1966) Chief, Social Work Service (Retired) Department of Veterans Affairs, Northern California Health Care System Past Member of the `Bay Area Consortium on Homeless Veterans" Past Member of the Board of Directors, "Sacramento Stand Down for Homeless Veteran" Past Member of the Board of Directors, "East Bay Stand Down for Homeless Veterans" Volunteer, LDS Bishop's Store House (Food Pantry) Due to my past experience I am well versed in the problems associated with care and the provision of services to the homeless of our community. That challenge is best expressed in the motto of the Department of Veterans Affairs Stand Down Program. "A hand up not a hand out ". In order to provide a "hand up" it is necessary to have access to job training programs that are capable of leading to meaningful employment at salary levels with which an individual can afford to live with dignity. Da Vinci Fusion's proposal to partner with other groups serving the homeless offers the appropriate "hand up ". I strongly endorse their proposal and recommend approval by the Board. Wayn Ernstrom, MSW February 6, 2001 To: Members of the Alameda Reuse and We, the officers and board of the received some exciting news today. briefing was held at the museum site Development Representative, Department of Congresswoman Barbara Lee's office and Ed Levine, of ARRA. Redevelopment Authority Alameda Naval Air Museum, An orientation tour and for Dianne Church, Economic of Commerce, Sandre Swanson, , Dave Wilson, Dave Burger, The meeting was extremely cordial and productive and we received assurances that the museum would receive full funding for building upgrades for both Building 77 and Hangar 41. This assurance came with the proviso that the City of Alameda would endorse the museum project as the city has ownership of the buildings. The funds covering upgrades for both buildings would be issued half this year and half next year. Funds would cover engineering and construction costs. We request your continued support for our project so that we can obtain the five year extension of the lease with first right of renewal on Hangar 41 needed to further the project. In recent months we have moved all the artifacts from Building 29 to Bldg. 77 and Hangar 41. We have completed extensive roof repairs on Bldg. 77, obtained additional architectural drawings for the wheel chair ramp, bathrooms etc., obtained $7,000 worth of insurance and obtained needed utility hookups and a telephone. We have landscaped and done extensive housekeeping as well as improving security. Our museum is well on the way towards being established and will become an exciting tourism attraction for the City of Alameda. We plan to offer cultural public events and will cooperate in every way with the City. We consider this to be a once-in-a-lifetime opportunity to save the valuable history of the Alameda Naval Air Station. We ask you to endorse this unique project and help us move forward. Respectfully submitted, aylAs2/ipk Marilyn York, President/C.E.O. Alameda Naval Air Museum