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1996-10-02 ARRA Minutes APPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, October 2, 1996 The meeting convened at 5:37 p.m. with Chair Appezzato presiding. ROLL CALL Present: Chair Ralph Appezzato, Mayor, City of Alameda; Vice-Chair Sandré Swanson, District Director, 9th Congressional District (arrived at 5:50 p.m.); Alternate Mark Friedman for Wilma Chan, Alameda County Board of Supervisors, District 3 (left at 7:30 p.m.); Alternate Kathy Ornelas for Ellen Corbett, Mayor, City of San Leandro; Alternate Jay Leonhardy for Henry Chang, Jr., Councilmember, City of Oakland (left at 6:50 p.m.); Alternate Pattianne Parker for Albert DeWitt, Councilmember, City of Alameda; Alternate Greg Alves for Karin Lucas, Councilmember, City of Alameda; Alternate Tony Daysog for "Lil"Arnerich, Councilmember, City of Alameda; Ex-officio Lee Perez, Base Reuse Advisory Group; Berresford Bingham, Ex-officio, Alameda Unified School District. Absent: None. Resigned: Charles Mannix, Councilmember, City of Alameda CONSENT CALENDAR At the request of Alternate Daysog, item 2-C was pulled for questions. Alternate Alves moved approval of the remainder of the Consent Calendar. Alternate Leonhardy seconded the motion, which carried by the following voice vote: Ayes: 7. Noes: 0. Abstain: 0. Absent: 1 - Swanson. Items so enacted or adopted are indicated by an asterisk. *2-A. Approval of Minutes of the Regular Meeting of September 4, 1996. Approved. *2-B. Report From the Executive Director Recommending Support of Alameda Reuse and Redevelopment Authority’s Membership in the California Defense Facilities Marketing Association. Approved. *2-D. Recommendation From the BRAG That No Action Be Taken on the Leasing of NAS Housing Until the ARRA Housing Consultant Completes the Housing Feasibility Study and the Report Is Reviewed and a Recommendation Formulated by the BRAG. Approved. 2-C. Recommendation From the Executive Director that the Alameda Reuse and Redevelopment Authority (ARRA) Authorize the Executive Director to Execute an Agreement with the City of Alameda Community Development (CDD) to Implement the Office of Economic Adjustment (OEA) Grant to Establish a Redevelopment Project Area for the Alameda Naval Air Station. Alternate Daysog stated his concern with the impact that a 1,700-acre redevelopment area would have on the general fund, which he said would be negatively impacted by the cost of providing 2-A _Printed on recycled paper services to the base because property taxes generated on the base will not accrue to the general fund. Executive Director Miller stated that ARRA economic and financial studies were currently underway to insure that the fiscal impact of the base conversion, including formation of a redevelopment area, would leave the City whole. Chair Appezzato stressed that one of the goals of the Reuse Authority is not to financially harm the rest of the City from the redevelopment of the base. Member DeWitt stated that he believes that the two existing redevelopment areas in the City now pay a fee to the general fund for City services. Mr. DeWitt further stated that the City will get more money back from the sales taxes and other business taxes and fees from a redevelopment area than it would receive from property taxes; also, a redevelopment area exists for a limited time. Alternate Daysog’s concerns were duly noted and Alternate Daysog asked the Assistant General Counsel to issue an opinion of the legality of redevelopment funds being used to pay for services. Assistant General Counsel McLaughlin indicated that she would prepare an opinion. Alternate Alves moved to authorize the Executive Director to execute an agreement with the City CDD to implement the OEA grant to establish a redevelopment project area for NAS Alameda. Alternate Friedman seconded the motion, which passed by the following voice vote: Ayes: 6. Noes: 1 - Alternate Daysog. Abstain: 0. Absent: 1 - Swanson. ACTION ITEMS 3-E. Report from the Executive Director Recommending Adoption of a Resolution by the Alameda Reuse and Redevelopment Authority (ARRA) Detailing the Proposed Package of Local Incentives for the ARRA’s Application to California Trade and Commerce Agency for a LAMBRA (Local Area Military Base Recovery Act) Designation. Executive Director Miller stated that the LAMBRA application deadline is November 5. She stated that ARRA staff had met with all affected City departments and the City Manager’s office to develop a package of business incentives that would be low cost to the City yet of high value to businesses considering locating at NAS Alameda. Julie Mantrom, ARRA Management Analyst, stated that the current length of the LAMBRA designation is eight years; however, there is a move to change it to fifteen years. Alternate Daysog questioned whether or not members from City commissions such as Economic Development and Planning Commissions had been invited to join the LAMBRA team. Executive Director Miller answered that Planning and CDD staff had been included to create a “fast tracking” team but she did not feel it was necessary to include the Commissions. Mr. Daysog stated that it was his personal preference that they be included. Chair Appezzato read the comprehensive list of LAMBRA team members that are presently included in the LAMBRA application. Member DeWitt moved to adopt the Resolution detailing the proposed package of local incentives for the LAMBRA designation. Member Swanson seconded the motion and it passed unanimously: Ayes: 8. Noes: 0. Abstain: 0. Absent: 0. ORAL REPORTS 4-F. Report From Jim Musbach of Economic Planning Systems (EPS) on Results of the Market Study and Framework/Methodology for the EDC Application. _Printed on recycled paper 2 Mr. Musbach reported that EPS is engaged in combining the financial information from the various studies underway to construct a financial model. This model can then be queried using different assumptions to provide financial analyses based on alternative development plans. This will include assumptions for variables such as proposed wildlife refuge sizes and with/without a restricted use airfield operation. Member Swanson emphasized the immediate need for a financial analysis of the airfield given the possible lost opportunity costs and the economic impact that an early injection of cash from an airfield operation might provide. Alternate Alves asked whether or not the City will have to pay for the NAS Alameda property being conveyed through an Economic Development Conveyance. Mr. Musbach replied that the federal government wants to make money from the property; an EDC means the property is conveyed for less than market value but not necessarily zero value. The property is being appraised now and the price will be negotiated with the Navy. The price starts at market value and then is discounted by economic development costs such as infrastructure costs, the cost of freeing the property from the Public Trust, etc. Norton Air Force Base cost $52 million. Mr. Musbach discussed historical growth in employment in the Bay Area and provided a comparison of supply and demand conditions and NAS market potential. 4-G. Oral Report from the BRAG Updating the ARRA on Current Activities. Chair Lee Perez reported that subcommittees have been restructured into working groups and their resources are diminishing while their work is increasing. Working Groups are currently studying matters such as the possible financial impacts of continuing the Commissary as well as housing issues. Mr. Perez invited everyone to the Town Hall meeting on November 13 at 7:00 p.m. in the Cafeteria of Historic Alameda High School. 4-H. Oral Report from the Executive Director Updating the ARRA. Ms. Miller reported on one additional BRAG Working Group that is working on the Alameda Recreation and Park request to add (or restore) ten acres to the Sports Complex. Ms. Miller stated that the September 17 Container Cargo Forecast Roundtable unanimously concluded that the cargo forecast was correct and the projections would probably be realized. The EBCRC has approached the Office of Economic Adjustment for a grant to fund the next step, a feasibility study to ascertain whether NAS is a viable option for five cargo container berths. A very productive meeting was held Friday, September 13 with Deputy Assistant Secretary of the Navy William J. Cassidy, Jr. and representatives from the Department of the Interior, Congressman Ronald V. Dellums’ office, and the ARRA. This two-hour meeting was arranged by Secretary Cassidy for the ARRA to present its Draft Conceptual Management Plan for the California Least Tern and to initiate meaningful discussion. Meeting participants received substantial encouragement from the Navy to continue the dialogue and a follow-up meeting was set for October 25 at NAS Alameda, where the site can be viewed. The goal is to bring this issue to closure by the end of the month. A BRAG Town Meeting has been scheduled for November 13 at 7:00 p.m. at Historic Alameda High School Cafeteria. A Developer Panel (“mini-ULI” type panel) is being planned by Bay Area Economics for November 21–22. ARRA and BRAG members are invited to attend the afternoon session of November 22 to hear advice from developers on the how, what, when, and where for developing the base. Ms. Miller thanked the cities of Alameda and Oakland for each contributing _Printed on recycled paper 3 $5,000 toward this effort. Last, Ms. Miller announced that an additional $62,000 has been awarded by OEA as an amendment to our current OEA grant for environmental consulting, a consultant for the EDC strategy, and $30,000 for the City Public Works Department to help them develop their part of the Cooperative Services proposal. In closing, Ms. Miller thanked the County of Alameda for their participation in the LAMBRA incentives as well as the $5,000 they contributed for the consultant to put together the LAMBRA package. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT) Bill McCall, an 82-year Alameda resident and former Mayor asked for, in writing, an answer to the following: (1) Least Terns—why do they need more than 50 acres when they now have four and why can’t they be relocated to the Oakland Airport in the westerly portion? (2) Why is Alameda the dumping ground for Oakland and San Leandro’s homeless? Who made the deal on the hotel? (3) The RV Park—why doesn’t the City of Alameda operate it? (4) Why does the City of Alameda Recreation Department have to relocate their soccer fields to the westerly end to accommodate somebody else? (5) He is very disturbed that revenue sharing related to the wildlife refuge acreage will go to the County. Chair Appezzato directed ARRA staff to draft a response to Mr. McCall’s questions and concerns. Sam L. Broadnax, San Francisco Bay Area Chapter of the Tuskeegee Airmen, urged and encouraged the ARRA to allow their organization to have an annual air show at NAS Alameda. Chair Appezzato asked Executive Director Miller to have the Airfield Task Force also look at this issue. Member Swanson encouraged Executive Director Miller to meet with the organization. Joe L. Davis, Nimitz Field Project, stated that they will have a business plan with two or three scenarios to prove out the profitability and jobs created by a limited use airfield. Neil Patrick Sweeney, Alameda resident, spoke to many issues, including declaring war on environmental toxic cleanup and publishing all aspects of base conversion on the Internet. Ed Nwokedi, President of City Garage/Carstar, asked the ARRA to strongly consider a limited use airfield, as Carstar has customers now who are willing to bring their aircraft in for refinishing. Paul Beck, UNC Lear, Oklahoma City, stated that NAS Alameda has the best facilities his company has seen to accommodate their expansion needs. He urged the ARRA to approve a limited use airfield as Alameda can offer ideal one-stop shopping and re-employ already trained, laid-off workers. Chair Appezzato asked if they could provide a conceptual proposal; Mr. Beck answered yes. Geoff Macfee, President Otis Spunkmeyer Air, stated they need hangar space for their two DC3 aircraft and they would like to use NAS as a launching point for upscale one-hour flights of the area. ADJOURNMENT TO CLOSED SESSION TO CONSIDER: At 7:40 p.m., the meeting adjourned to closed session for a Conference with Legal Counsel – Anticipated Litigation: Initiation of litigation pursuant to subdivision © of Section 54956.9: 1 case. _Printed on recycled paper 4 RECONVENE TO PUBLIC SESSION AND ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION, IF ANY. At 7:48 p.m. the meeting reconvened and it was announced that the Governing Body had received a briefing from legal counsel and no action was taken. COMMUNICATIONS FROM GOVERNING BODY Alternate Alves asked that an MOU be written between the ARRA and Pan Pacific University to detail how the Economic Development Conveyance/Leaseback arrangement would be handled. Executive Director Miller said that staff agrees that an MOU is a good idea. Member Swanson asked that information be provided on how much money has been generated to date from interim leased/licensed properties. Ms. Miller stated that most revenue was being generated from very short-term licenses. The Navy receives 50 percent of revenues derived from licenses; however, talks are ongoing about how the Navy’s 50 percent can be used in such a way that it will also benefit the ARRA. ADJOURNMENT The meeting was adjourned by Chair Appezzato at 7:50 p.m. Respectfully submitted, Margaret E. Ensley Secretary _Printed on recycled paper 5