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
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153
1
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119
(A)
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JIL
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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