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2003-04-15 CIC CS Minutes MINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY- -APRIL 15, 2003- -5:40 P.M. Chair Johnson convened the Special Meeting at 6:00 p.m. Roll Call - Present: Commissioners Daysog, DeWitt, Kerr, Matarrese and Chair Johnson – 5. Absent: None. Public Comment Alan Mitchell, Advancing California’s Energy Technologies (ACET) Board Chair, stated ACET and the City began a business incubator several years ago; ACET has successfully started companies that have attracted capital investments and created jobs; with federal funding, ACET will move to a larger facility; ACET looks forward to continuing to work with the City. Samuel Doctors, ACET Chief Executive Officer, stated use of Building 7 allowed ACET to test setting up an incubator for small laboratories; the facility is the only one of its type west of the Mississippi; the nine graduate companies have received $200 Million in capital, created over 1,000 jobs and pay over $10 Million per year in taxes; ACET has received $6.44 Million from the federal Economic Development Administration (EDA); projections indicate that over the next five years ACET companies should attract over $1 Billion in venture capital, create upwards of 6,000 jobs and could fill all 500,000 square feet of industrial area at the Fleet Industrial Supply Center site; companies would pay between $10–15 Million per year in local taxes; ACET has an active foreign trade program supported by the Department of Commerce and has a good working relationship with Lawrence Livermore Lab and Lawrence Berkeley Lab. Commissioner Daysog inquired whether ACET is committed to remaining in Alameda, to which Mr. Doctors responded ACET expects to break ground in December. Commissioner DeWitt stated there have been rumors that the City of Oakland would like ACET to move to Oakland. Mr. Mitchell stated the Board acted very slowly to consider moving outside of Alameda and only looked elsewhere when the likelihood of being able to remain in Alameda seemed dim. Commissioner DeWitt inquired whether ACET plans to stay in Alameda, to which Mr. Doctors responded if the City agrees that ACET can Special Meeting Community Improvement Commission April 15, 2003 1 move forward, he and Mr. Mitchell would be delighted to urge the ACET Board to move forward. Chair Johnson inquired whether ACET would wait to review the deal offered by the City of Oakland, to which Mr. Mitchell responded that he would push for a vote to have ACET remain in Alameda. Chair Johnson requested ACET to keep the City informed about its status with Oakland. Mr. Doctors stated ACET is continuing to negotiate until there is a fixed deal in either location; the advantage of staying in Alameda is that the EDA has approved the plans, including the EIR. Commissioner DeWitt urged ACET to remain in Alameda. Mr. Doctors stated the City has to sell the land to Catellus and Catellus has to be prepared to sell the land to ACET; Catellus has indicated its willingness to sell the land for the agreed upon price; the appraisal was based upon completion of the simple backbone infrastructure; infrastructure must be in place before ACET begins construction. Commissioner DeWitt inquired where ACET obtains operation funds. Mr. Doctors responded incubator companies pay rent; the EDA has provided subsidy for the past five years because there is not enough square footage for rent in the current building to cover costs; the industry standard to cover costs is 30,000 square feet, which is the square footage proposed for the new building. Commissioner DeWitt inquired whether the EDA would provide additional subsidy. Mr. Doctors responded the EDA has agreed to provide subsidy through construction of the new building; noted that ACET paid $70,000 in upfront costs to have the site approved; said cost can only be repaid to ACET if the Alameda site is selected; moving forward with Alameda is in ACET’s best interest. The Special Meeting was adjourned to Closed Session to consider: (03-021) Conference with Real Property Negotiator; Property: 1825 Park Street; Negotiating parties: City of Alameda and Ron Goode Toyota; Under negotiation: Price and terms. (03-022) Conference with Legal Counsel – Existing Litigation; Name of case: IRES (California) Inc. v. Community Improvement Commission Special Meeting Community Improvement Commission April 15, 2003 2 and City of Alameda. (03-023) Conference with Real Property Negotiator; Property: Enterprise Landing, Alameda Point; Negotiating parties: City of Alameda and ACET; Under negotiation: Price and terms. Following the Closed Session, the Special Meeting was reconvened and Chair Johnson announced that regarding 1825 Park Street, the Community Improvement Commission (CIC) obtained a briefing from Real Property Negotiators; regarding Conference with Legal Counsel, the Commission obtained a briefing from General Counsel; and regarding Enterprise Landing, Alameda Point, the CIC obtained a beefing from Real Property Negotiators and gave instructions. Adjournment There being no further business, Chair Johnson adjourned the Special Meeting at 7:25 p.m. Respectfully submitted, Lara Weisiger Secretary, Community Improvement Commission The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Community Improvement Commission April 15, 2003 3