2009-02-03 Joint ARRA CIC MinutesMINUTES OF THE SPECIAL JOINT ALAMEDA REUSE AND
REDEVELOPMENT AUTHORITY (ARRA) AND
COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY- -FEBRUARY 3, 2009- -7:31 P.M.
Chair Johnson convened the Special Meeting on February 4, 2009 at
12:10 a.m.
ROLL CALL - Present: Board Members/Commissioners deHaan,
Gilmore, Matarrese, Tam, and Mayor/Chair
Johnson – 5.
Absent: None.
CONSENT CALENDAR
Chair Johnson announced that the recommendation to authorize the
use of $350,000 [paragraph no. 09-05 CIC/ARRA] would be removed
from the Consent Calendar for discussion.
Board Member/Commissioner deHaan moved approval of the remainder of
the Consent Calendar. [Items so enacted or adopted are indicated by
an asterisk preceding the paragraph number.]
Board Member/Commission Tam seconded the motion, which carried by
unanimous voice vote – 5.
(*09-04 CIC) Minutes of the Special Joint City Council and CIC
Meeting, and the Special CIC Meeting held on January 6, 2009.
Approved.
(09-05 CIC/ARRA) Recommendation to authorize the use of $350,000
of Tax Exempt Bond Funds from the Merged Area Bond (Funds 201.11
and 201.15) and appropriate the funds for use for the Fleet
Industrial Supply Center (FISC) Emergency Water Repairs and
Electrical Upgrades at Park Street and Buena Vista Avenue; and
authorize FISC Lease Revenue for additional annual support of the
Façade Grant Program.
The Developer Services Director gave a brief presentation.
Board Member/Commissioner Gilmore requested an explanation of the
$390,000 returned from the Library.
The Development Services Director stated the 2003 Merged Bond
Project pledged $1 million for the Library; the Library did not use
all of the money and returned $690,000; $300,000 has been spent for
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the second floor theatre seating.
Chair Johnson stated the Façade Grant Program is one of the most
important things the City does, especially for small businesses;
the Buena Vista Avenue and Park Street electrical project will
affect all of Park Street and became an issue when the Market Place
was established.
Board Member/Commissioner deHaan inquired whether underground
projects cannot be taken from Alameda Municipal Power’s (AMP’s)
undergrounding efforts.
The Development Services Director responded the City has a list of
priority underground projects; stated the City needs to partner
with AMP and the Redevelopment Agency to perform multiple economic
efforts.
Speaker: Robb Ratto, Park Street Business Association.
Board Member/Commissioner Matarrese moved approval of the staff
recommendation in the following amounts: $450,000 for water
repairs; $150,000 for electrical upgrades; and $200,000 for the
Façade Grant Program for a total of $800,000.
Board Member/Commissioner deHaan seconded the motion, which carried
by unanimous voice vote – 5.
AGENDA ITEMS
(09—06 CIC) Recommendation consider an amendment to the Lease
Agreement of 2315 Central Avenue between the CIC of the City of
Alameda, Lessor, and Alameda Wine Company, LLC, Tenant.
The Development Services Director gave a brief presentation.
Speakers: Karen Ulrich, Alameda Wine Company owner; Jon Spangler,
Alameda; Jim Foster, Alameda.
Chair Johnson stated operating hours were outlined in the lease
because the Commission did not want dead zones near the theatre;
the business plan does not seem to be fully implemented; the owner
needs to determine whether she can run her business in a way that
complies with the lease requirements; otherwise, the owner should
consider moving to another location.
Commissioner Gilmore concurred with Chair Johnson; stated the
Commission considered many potential tenants for the space and had
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February 3, 2009
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specific hours of operation; many potential tenants that could not
do lunch hours were disqualified; the owner would not have been
granted the lease for just a bar.
Commissioner deHaan stated starting a new business is a challenge;
the owner would go back to full hours if the right mix is found; a
lot of money has been forgiven at Alameda Point; a six month trial
period is reasonable.
Chair Johnson stated there are reasons for business hours;
businesses need to be open to have a customer base.
Commissioner Gilmore stated the business is already profitable
later in the day and in the evening; that she does not understand
how the business would be built up by closing from ll:00 a.m. to
4:00 p.m.
Commissioner Matarrese stated the Commission was very clear on the
lease provisions; the business is profitable now and ahead of
projections; dead hours cannot be addressed if the business is not
open; that he does not see the advantage of reducing hours; a
change in the lease is premature.
Commissioner Matarrese moved approval of deferring any change to
the lease until the business faces possible closure.
Chair Johnson stated the business owner needs to implement the
original business plan; changes need to be made.
Commissioner Gilmore seconded the motion.
Under discussion, Commissioner Tam stated that she would abstain
from voting on the matter; the staff report suggests the need for
more marketing; that she does not feel there is enough information
to tell the business owner how the business should be operated.
Commissioner Gilmore stated that the business owner should live up
to the terms of the lease; the hours of operation are very clear.
Commissioner deHaan stated the business owner needs some leeway;
the City needs to work with the business owner.
Commissioner Matarrese stated street activity was part of the plan
to renovate the theatre and build the parking structure; the
business plan is a good model; the retail side needs to be
reviewed; salvaging the business might be an option if the business
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was in the red and in danger of folding; the business is profitable
and is almost a year ahead of projections.
Commissioner deHaan stated the theatre developer was going to open
a wine bar in the theatre and that has not happened; hours of
operation would be limited.
The Development Services Director stated the theatre developer
discussed opening a wine bar at the same time; the lease does not
require a wine bar be built upstairs.
On the call for the questions, the motion carried by the following
voice vote: Ayes: Commissioners Gilmore, Matarrese, and Chair
Johnson – 3. Noes: Commissioner deHaan – 1. Abstentions:
Commissioner Tam – 1.
(ARRA) Recommendation to approve a Five Year Lease and Repayment
Plan/Write-off with AC Hornet Foundation.
[Note: The minutes for this item are part of the ARRA record]
(ARRA) Recommendation to approve an amendment to Consultant
Contract with Harris & Associates for On-Call Services for Review
of Land Development Entitlement Applications for Redevelopment of
Alameda Point. Continued.
ORAL REPORTS
(ARRA) Oral Report from Member Matarrese, Restoration Advisory
Board (RAB) – Highlights of January 8th Alameda Point RAB Meeting.
[Note: The minutes for this item are part of the ARRA record]
ADJOURNMENT
There being no further business, Chair Johnson adjourned the
Special Joint Meeting at 1:22 a.m.
Respectfully submitted,
Lara Weisiger
Secretary, Community Improvement
Commission
The agenda for this meeting was posted in accordance with the Brown
Act.
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Alameda Reuse and Redevelopment Authority and Community Improvement Commission
February 3, 2009
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