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2008-07-01 ARRA PacketThe Regular Meeting of the Alameda Reuse & Redevelopment Authority (ARRA) scheduled for July 2, 2008 has been canceled. A Special Meeting is scheduled on Tuesday, July 1, 2008 at 7:31 p.m. AGENDA Special 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 . ROLL CALL 2. CONSENT CALENDAR Tuesday, July 1, 2008 Meeting will begin at 7:31 p.m. Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public. 2 -A. Approve the minutes of the Regular Meeting of June 4, 2008. 2 -B. Approve a Sublease for Stafford Stafford Sent Packing at Alameda Point. 2 -C. Accept a $128,000 Grant from the Federal Office of Economic Adjustment in Support of the North Housing Parcel Screening Process and Authorize the Executive Director to Execute Related Documents. 3. REGULAR AGENDA ITEMS 3 -A. Alameda Point Update 4. ORAL REPORTS 4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative. 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 that is not on the agenda.) 6. COMMUNICATIONS FROM THE GOVERNING BODY 7. ADJOURNMENT ARRA Agenda — July 1, 2008 Page 2 This meeting will be cablecast live on channel 15. Notes: • Sign language interpreters will be available on request. Please contact the ARRA Secretary at 749 -5800 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, June 4, 2008 The meeting convened at 7:04 p.m. with Chair Johnson presiding. 1. ROLL CALL Present: Chair Beverly Johnson Boardmember Doug deHaan Boardmember Frank Matarrese Boardmember Marie Gilmore Vice Chair Lena Tam 2. CONSENT CALENDAR 2 -A. Approve the minutes of the Regular Meeting of May 7, 2008. 2 -B. Approve the First Amendment to the Lease Agreement for St. George Spirits at Alameda Point. 2 -C. Approve a Second Amendment to the Agreement with Marc Associates to Extend the Term for Seven Months and Add $45,000 for a Total Budget of $120,000 for Provision of Intergovernmental Relations Services. Vice Chair Tam abstained from Item 2 -A (May 7 Minutes) because she was absent from that meeting. Approval of Item 2 -A was motioned by Member Matarrese, seconded by Member Gilmore and passed by the following voice votes: Ayes: 4, Noes: 0, Abstentions: 1. The balance of the Consent Calendar was motioned by Member Matarrese, seconded by Member Gilmore and passed by the following voice votes: Ayes: 5, Noes: 0, Abstentions: 0 3. REGULAR AGENDA ITEMS 3 -A. Alameda Point Update Debbie Potter, Base Reuse and Community Development Manager, provided an update focusing on legislation approved by the House, and pending in the Senate, regarding the conveyance of Alameda Point. Staff worked with the Navy to pursue this legislation because they felt it was necessary to streamline the conveyance of the property. Since 1993, there have been lots of barriers and the strategy was to look at an approach that would be as efficient as possible in conveying the property. The legislation outlines three possible options: 1) take the June 2006 negotiated draft term sheet with the Navy and provide a timeframe for allowing SunCal to work with the Navy and ARRA on a Term Sheet that works for them to convey the property; 2) provide a land price formula that SunCal could elect to pursue if they were interested in that land price formula or felt that they couldn't work out a Term Sheet with the Navy on conveyance terms, and; 3) in the event the master developer withdrew, allow the ARRA to work with the Navy to auction the property. Special legislation is necessary due to public trusts lands which preclude the Navy to auction the property on its own. If the bill passes, it will go into effect on October 1St Member Matarrese requested that staff provide more detailed information under `budget consideration /fiscal impact', i.e., how much, did we spend, did we exceed budget, etc. Ms. Potter explained that all the activities undertaken by staff and consultants to prepare the legislation is an eligible reimbursement activity pursuant to the ENA with SunCal, that all costs are borne by SunCal. Member Matarrese would like to see these details in the staff report. He also asked about the activities SunCal is currently undertaking. Ms. Potter discussed that SunCal is particularly focused on examining sea level rise on Alameda Landing and Alameda Point, fill and geotechnical grading, updating the infrastructure numbers and hoping to have an updated proforma in 2 -4 weeks that reflect those numbers. SunCal is also working on scheduling community meetings at the end of July or beginning of August, and on Sept. 19, their Development Concept is due. Member deHaan was hoping for more detail or progress report on each of the myriad activities that SunCal is doing. Ms. Potter explained that staff heard the desire expressed by the Board last month for a detailed progress report. She stated that SunCal will be back next month with a detailed update the Board is looking for. Member deHaan clarified the purpose of the options of the legislation and Ms. Potter affirmed his clarification. Vice Chair Tam asked for clarification on the consent calendar item just approved regarding increasing Marc Associates' budget. Ms. Potter confirmed that Marc Associates is the firm that worked with staff and the Navy on this legislation, and that their entire effort is covered under the contract amount of $120,000. In an effort to understand our coalition partners and how we are stacked in the bill, Vice Chair Tam commented that the Alameda Point legislation Section 2851 is a small piece. Ms. Potter explained that the entire bill is approximately 1000 pages long and Alameda Point is sandwiched between a number of other bases (all branches, not just the Navy — including Army, Air Force, etc.) across the country that also have special legislation. David Brandt, Deputy Executive Director further explained that, in Washington DC, there are two acts: the Annual Defense Authorization Bill and the Annual Appropriations Bill, and there cannot be an Appropriation for any activity without first having Authorization. He stated that Marc Associates also works with the City and County of San Francisco and the League of Cities. Chair Johnson commented on how effective Marc Associates has been on this defense legislation. 4. ORAL REPORTS 4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative. Member Matarrese reported that there was no RAB meeting between the last ARRA meeting and this one. He did attend a walkthru of some of the sites on Saturday and has photos to share. Member deHaan also attended the tour, which he said was presented as an overview on the remediation of the sites, but the tour was sidetracked and the focus was more on the fish and wildlife activities. 5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) There were no speakers. 6. COMMUNICATIONS FROM THE GOVERNING BODY None. 7. ADJOURNMENT Meeting was adjourned at 7:22 p.m. by Chair Johnson. Respectfully submitted, Irma Glidden ARRA Secretary Alameda Reuse and Redevelopment Authority Interoffice Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Debra Kurita, Executive Director Date: July 1, 2008 Re: Approve a Sublease for Stafford Stafford Sent Packing at Alameda Point BACKGROUND The Alameda Reuse and Redevelopment Authority (ARRA) governing body approves all Alameda Point subleases with a lease teini greater than one year. The proposed sublease for Stafford Stafford Sent Packing is for three years, plus two, one -year options to extend. DISCUSSION Attachment A describes the business terms for the proposed sublease renewal for Stafford Stafford Sent Packing in Building 611. The rent for STAFFORD STAFFORD SENT PACKING is $6,000 annually, or $0.50 per sq. ft. in the first year and a 3% increase each year in the subsequent years, including the option period, for real estate staging and support services use. Building 611 is in fair condition. Stafford Stafford Sent Packing has requested a lease for three years plus two, one -year options to extend the lease. There is language in the lease that once the extension has become operative, the lease can be cancelled with a 90 day written notice. In accordance with the Exclusive Negotiating Agreement, this lease has been discussed with representatives from SunCal Companies and has their concurrence. BUDGET CONSIDERATION / FINANCIAL IMPACT This lease will generate $6,000 in the first year. These funds will be retained by the ARRA. RECOMMENDATION Approve a sublease for Stafford Stafford Send Packing at Alameda Point. Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority By: Re ec611y submitted Leslie Little Development Services Director Nanette Banks Finance & Administration Manager Attachment: A. Proposed Sublease Business Terms B. Site Map July 1, 2008 Page 2 ATTACHMENT A PROPOSED SUBLEASE BUSINESS TERMS TENANT BUILDING SIZE (SF) TERM RENT Stafford Stafford Sent Packing 611 1,000 3 yrs + Two 1 yr Extension Options $500 /mo. PAN AM WAY 7-- ATTACH vIE 153 1 gE 119 (A) u1 I lf JIL ir _iHL r _JL-o (,) 1 Alameda Reuse and Redevelopment Authority Interoffice Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Debra Kurita, Executive Director Date: July 1, 2008 Re: Accept a $128,000 Grant from the Federal Office of Economic Adjustment in Support of the North Housing Parcel Screening Process and Authorize the Executive Director to Execute Related Documents BACKGROUND On November 5, 2007, the Navy declared an additional 42 acres at the former Naval Air Station Alameda (Alameda Point) as surplus. The property, referred to as the North Housing Parcel, was previously used by the Coast Guard. The surplus declaration triggers a legislatively prescribed screening process created by the McKinney -Vento Act. This act requires the Federal government to prioritize any military surplus property to meet homeless needs for both housing and services. The screening process is used to solicit, evaluate, and accommodate homeless assistance requirements and then, subsequently, public uses in planning and implementing the reuse of any surplus property. The Alameda Reuse and Redevelopment Authority (ARRA), as the Local Redevelopment Authority (LRA), is responsible for conducting the screening process. DISCUSSION The ARRA applied for financial assistance to underwrite the North Housing screening process from the Federal Office of Economic Adjustment (OEA) in January 2008. The OEA was established in 1961, within the Department of Defense, to work with communities adversely affected by defense program changes. OEA provides hands -on technical assistance and funds economic adjustment planning activities. On June 12, 2008, OEA approved the $128,000 grant request. The funds are budgeted as follows: Contractual Services - Homeless Needs Analysis $ 31,500.00 Contractual Services - Technical Assistance for Review of Notices of Interest $ 20,000.00 Contractual Services - Community Reuse Plan Amendment Planning Process $ 75,000.00 Material costs and postage $ 1,500.00 Total OEA Grant $ 128,000.00 As indicated by the OEA grant budget, the screening process for the North Housing Parcel includes several tasks for which consultants were hired. PMC World, an Oakland -based consulting firm, was retained to prepare a Homeless Needs Assessment, which was accepted by the ARRA in March 2008. Subsequently, five organizations submitted Notices of Interest to reuse portions of the North Housing Parcel to meet homeless needs and certain other eligible Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority July 1, 2008 Page 2 uses (public park and self -help housing). The five organizations, along with the proposed projects, will be evaluated by staff and Strategic Economics, a real estate economics consulting firm, as part of the screening process. Finally, EDAW, a planning and environmental consulting firm, will implement the public process to amend the 1996 NAS Alameda Community Reuse Plan (Reuse Plan). "Amendment #1: Main Street Neighborhoods Update" will address the reuse of the newly declared 42 surplus acres and also include an update of redevelopment efforts in this sub -area of NAS Alameda. The Base Realignment and Closure Act requires community outreach and opportunities for participation in the reuse plan amendment process, which will include two public workshops in Summer 2008. Based on community feedback regarding alternative reuse strategies, staff will submit "Amendment #1: Main Street Neighborhoods Update" to the ARRA for its consideration at a public hearing in October 2008. PBC and homeless accommodations that are consistent with the preferred reuse strategy for the property will be required to execute a legally binding agreement (LBA) with the ARRA. An ARRA- approved amendment to the Reuse Plan and related LBAs will be submitted to HUD, along with a complete summary of the surplus process conducted by the LRA. Once approved by HUD, "Amendment #1: Main Street Neighborhoods Update" will reflect the community's consensus for civilian reuse of the 42 acres, and guide the Navy's consideration of property conveyance options. BUDGET CONSIDERATION/FINANCIAL IMPACT The OEA grant will fund the contractual services costs for the surplus process. The required 10% local match will be met through in -kind staff costs in the Development Services Department. The staff costs are included in the FY 2008/2009 ARRA budget. RECOMMENDATION Accept the $128,000 grant from the Federal Office of Economic Adjustment in support of the screening process for the North Housing Parcel and authorize the Executive Director to execute related documents. Respec sE ly submitted Leslie Little Development Services Director By: Debbie Potter Base Reuse and Community Development Manager Alameda Reuse and Redevelopment Authority Interoffice Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Debra Kurita Executive Director Date: July 1, 2008 Re: Alameda Point Update BACKGROUND As part of regular monthly Alameda Reuse and Redevelopment Authority (ARRA) meetings, staff updates the ARRA Board on Alameda Point activities, with a focus on SunCal's activities as master developer. SunCal gave a quarterly update of the project master schedule at the ARRA's May meeting. An update on SunCal's activities is provided below, as is information on the special legislation to provide several options for conveying Alameda Point from the Navy to the ARRA, now part of H.R. 5658, the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009. DISCUSSION Update on Master Developer Activities ARRA staff and SunCal representatives met with the Navy on June 5 to provide an update on SunCal's progress and to discuss a process for renegotiating the 2006 draft term sheet for conveyance. It was agreed that a subsequent meeting would be held in late July to review SunCal's infrastructure and other cost assumptions and SunCal's land use scenarios. Cost assumptions and land uses are critical components to determining land value. The Navy has pledged to work closely with the ARRA and SunCal to renegotiate the conveyance term sheet by July 2009, the end of the 24 -month Exclusive Negotiation Agreement (ENA) term. SunCal and ARRA staff have been meeting to discuss SunCal's assumptions regarding infrastructure. Consensus on assumptions may be achieved by mid -July. Those assumptions will provide the basis for developing and refining infrastructure obligations and costs. SunCal is interviewing consultants to conduct the Sport Complex Master Plan update, which is due on September 19, as part of the Development Concept submittal. It is anticipated that the selected consultant will meet with the stakeholder groups and the Recreation and Park Commission in August. SunCal will hold two community meetings on the land plan in August. In addition, SunCal has begun building its project pro fonna. A SunCal representative will be available to answer specific questions and provide Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority additional information at the July 1 ARRA meeting. July 1, 2008 Pg. 2 of 2 In May 2008, SunCal requested that the ARRA, Community Improvement Commission (CIC), and City Council approve an assignment of the ENA to a new entity that includes D.E. Shaw as a financial partner. SunCal subsequently requested that the item be continued to another date as principles from D.E. Shaw were unable to attend the meeting. This item is now tentatively scheduled for ARRA/CIC /City Council consideration at a special meeting on August 19, 2008. Update on Special Legislation At its June meeting, staff provided the ARRA Board with an update on legislation to specify three conveyance options available to the ARRA and Navy for transferring Alameda Point. The intent of the legislation is to create a statutory framework for property conveyance and simplify the transfer. The House of Representatives approved the legislation on May 22, 2008. The Senate has received and reviewed the legislation and placed it on the Senate calendar for debate. The exact date for debate is not known at this time. RECOMMENDATION This report is for information only and no action is required. Reupe• ` submitted, Leslie Little Development Services Director By: Debbie Potter Base Reuse and Community Development Manager Alameda Reuse and Redevelopment Authority Interoffice Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Debra Kurita Executive Director Date: July 1, 2008 Re: Alameda Point Update BACKGROUND 3 -A As part of regular monthly Alameda Reuse and Redevelopment Authority (ARRA) meetings, staff updates the ARRA Board on Alameda Point activities, with a focus on SunCal's activities as master developer. SunCal gave a quarterly update of the project master schedule at the ARRA's May meeting. An update on SunCal's activities is provided below, as is information on the special legislation to provide several options for conveying Alameda Point from the Navy to the ARRA, now part of H.R. 5658, the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009. DISCUSSION Update on Master Developer Activities ARRA staff and SunCal representatives met with the Navy on June 5 to provide an update on SunCal's progress and to discuss a process for renegotiating the 2006 draft term sheet for conveyance. It was agreed that a subsequent meeting would be held in late July to review SunCal's infrastructure and other cost assumptions and SunCal's land use scenarios. Cost assumptions and land uses are critical components to determining land value. The Navy has pledged to work closely with the ARRA and SunCal to renegotiate the conveyance term sheet by July 2009, the end of the 24 -month Exclusive Negotiation Agreement (ENA) term. SunCal and ARRA staff have been meeting to discuss SunCal's assumptions regarding infrastructure. Consensus on assumptions may be achieved by mid -July. Those assumptions will provide the basis for developing and refining infrastructure obligations and costs. SunCal is interviewing consultants to conduct the Sport Complex Master Plan update, which is due on September 19, as part of the Development Concept submittal. It is anticipated that the selected consultant will meet with the stakeholder groups and the Recreation and Park Commission in August. SunCal will hold two community meetings on the land plan in August. In addition, SunCal has begun building its project pro forma. A SunCal representative will be available to answer specific questions and provide Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority additional information at the July 1 ARRA meeting. July 1, 2008 Pg. 2 of 2 In May 2008, SunCal requested that the ARRA, Community Improvement Commission (CIC) and City Council approve an assignment of the ENA to a new entity that includes D.E. Shaw as a financial partner. SunCal subsequently requested that the item be continued to another date as principles from D.E. Shaw were unable to attend the meeting. This item is now tentatively scheduled for ARRA/CIC /City Council consideration at a special meeting on August 19, 2008. Update on Special Legislation At its June meeting, staff provided the ARRA Board with an update on legislation to specify three conveyance options available to the ARRA and Navy for transferring Alameda Point. The intent of the legislation is to create a statutory framework for property conveyance and simplify the transfer. The House of Representatives approved the legislation on May 22, 2008. The Senate has received and reviewed the legislation and placed it on the Senate calendar for debate. The exact date for debate is not known at this time. RECOMMENDATION This report is for information only and no action is required. Resp ;fin ully submitted, Leslie Little Development Services Director By: k .bie Potter Base Reuse and Community Development Manager