1997-01-06 ARRA Minutes APPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Monday, January 6, 1997
The meeting convened at 5:45 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;
Mark Friedman, alternate to Wilma Chan, Alameda County Board of Supervisors,
District 3;
Jay Leonhardy, alternate to Henry Chang, Jr., Councilmember, City of Oakland;
Kathleen Ornelas, alternate to Ellen Corbett, Mayor, City of San Leandro;
Tony Daysog, Councilmember, City of Alameda;
Albert DeWitt, Councilmember, City of Alameda;
Greg Alves, alternate to Karin Lucas, Councilmember, City of Alameda;
Barbara Kerr, Councilmember, City of Alameda;
Lee Perez, Ex-officio, Base Reuse Advisory Group;
Ardella Dailey, alternate to Ex-officio Berresford Bingham, Alameda Unified School
District.
Absent: None.
CONSENT CALENDAR
2-A. Approval of Minutes for the regular meeting of November 6, 1996.
2-B. Approval of Minutes for the regular meeting of December 4, 1996.
Alternate Friedman requested that the Minutes of December 4 be amended to reflect that it was
requested by Supervisor Chan and concurred in by the ARRA that the draft Memorandum of
Understanding for Pan Pacific University be brought to the ARRA for public discussion and
approval. Executive Director Miller agreed that was the understanding and the Chair directed the
ARRA secretary to so amend the December 4 meeting Minutes.
Alternate Friedman moved to approve the consent calendar. Alternate Ornelas seconded the
motion and it passed unanimously: 9.
ACTION ITEMS
3-C. Report from the Executive Director recommending the ARRA Governing Body authorize
the Executive Director to enter into a Master Large Parcel Lease with the Navy for a term of
15 years.
Executive Director Miller explained that the Master Large Parcel Lease imposes no obligation on the
City; the Navy will maintain the facilities until they are occupied (subleased). Assistant General
Counsel McLaughlin stated that, as a long-term lease, this item requires the affirmative vote of five
Governing Body members, of whom three must be Alameda City Councilmembers.
Speakers:
Stan Shane, an Alameda resident, spoke against items 3C, 3D, and 3E, stating that government is
out of control and that ARRA has no business getting involved with housing.
2-A
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Alternate Friedman moved to authorize the Executive Director to enter into a Master Large
Parcel Lease with the Navy for a term of 15 years. Alternate Alves seconded the motion and it
passed by unanimous voice vote: 9.
Chair Appezzato stated that item 3-E. Report from the Executive Director regarding
Councilmember Daysog’s request to review approval authority for the Executive Director to
execute leases. (Daysog) was being pulled from the agenda and item 3-D would be held until the
public address system was working. He called item 4-F.
4-F. Report from the Assistant General Counsel on voting requirements for actions by the
ARRA. (Appezzato, Daysog and Alves)
Assistant General Counsel Heather McLaughlin stated that action by the ARRA governing body
requires a majority of the members present to take action (assuming a quorum is present) with two
exceptions: first, less than a quorum may vote to adjourn a meeting, and second, five ARRA
members, of whom three must be Alameda City Councilmembers, must vote affirmatively on eight
specific items outlined in the staff report, including the transfer of any real or personal property of
the Authority. Member Daysog asked if this applies to long-term leases—anything more than seven
years. Ms. McLaughlin answered yes. Alternate Alves asked if item 3-D requires three City Council
votes. Ms. McLaughlin answered no.
Alternate Alves moved to accept the report. Member Daysog seconded and it passed
unanimously: 9.
4-G. Oral report from the BRAG updating the ARRA on current activities.
BRAG Chair Lee Perez reported that the Base Reuse Advisory Group is currently reviewing issues
such as the possibility of a limited use airfield, the commissary, retrocession, and how we can best
protect and utilize housing. He also stated that the BRAG was looking at the Cooperative Services
Agreement, adding that Fiscal Year 1999 (FY99) funding was a concern and that every possible
dollar is needed.
Chair Appezzato requested that Dave Ryan, present from the Navy’s EFA West division, explain the
Navy’s budgeting process for the Cooperative Services Agreement (CSA), in particular for FY99.
Mr. Ryan stated that the Navy first makes an analysis of the money required by the Navy to take care
of the property that the Navy is responsible for. The ARRA and its subtenants will be responsible
for the protection, maintenance, and improvements of leased property. The Navy expects that as
time goes on, more property will be leased and more of the financial responsibility will go to the
reusers. He stated that the budget for FY97 (5/97–9/97) [the 5 months following base closure] is
approximately $4.5 million. For FY98 (10/97–9/98), the Navy is projecting $8.7 million, although he
could not commit to that figure. Mr. Ryan stressed that he wanted to make it “loud and clear” that
the Navy fully expects that the money is going down, and the best estimate they can put together for
FY99 (10/98–9/99) is approximately $4.8 million. The figure that is approved through the Navy
chain of command, voted on by the Congress, and finally appropriated cannot be guaranteed, but the
amount is definitely going down. Chair Appezzato asked if the funds for FY99 are negotiable. Mr.
Ryan stated that the CSA is a one-year agreement with the option to continue. The CSA is a
“reimbursable document;” that is, the money has to be commensurate with the amount of work to be
done. Mr. Ryan continued that if there is not enough money then the City just does not do the work.
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Speaker:
Neil Patrick Sweeney, concerned citizen, asked that BRAG and ARRA meetings be televised so
that the community is fully informed.
3-D. Final report on the Housing Feasibility Study from Janet Smith-Heimer of Bay Area
Economics and authorization for the ARRA Executive Director to take actions necessary to
lease housing units in the Navy East Housing area.
Executive Director Miller stated that for the final Housing Feasibility Study, ARRA asked Bay Area
Economics (BAE) to (1) conduct a market study on the demand for residential housing in Alameda
for rental, sale, new construction, and existing housing; and, (2) to recommend what to do with the
existing housing at NAS Alameda. The findings from the BAE study were taken to the BRAG
Housing Working Group and the entire BRAG for a determination as to what should be done
immediately with the housing on the base. It had been expected that the East Housing would be
conveyed to ARRA this year. However, due to slippage in the EIS work, the Record of Decision will
not occur until well into 1998. As an interim measure (perhaps up to ten years for the apartment
units), the BRAG and the ARRA staff recommend leasing the units because (1) the consensus is
these units should not be boarded up, and (2) leasing could create a significant revenue stream.
Executive Director Miller requested staff be authorized to move forward toward a leasing program.
Chair Appezzato asked BRAG Chair Perez for comment, explaining that the Base Reuse Advisory
Group is a volunteer citizens group that represents the 80,000 members of the community. Chair
Appezzato thanked all the BRAG volunteers for giving their time to do a valuable job. Mr. Perez
reported that the BRAG agrees overall on the leasing recommendation with the major caveat that
decisions must be made with full knowledge of future ramifications. Mr. Perez then introduced
Helen Sause, BRAG Co-Chair and Alice Garvin, Chair of the Housing Working Group.
BRAG Vice-Chair Sause stated that the community and BRAG objective is for the base to become a
seamless part of the fabric of the City. One concern is that there is a mixture of housing types with
condos, rental units, and opportunities for home ownership. She explained that the townhouses and
apartments were examined separately. It was decided that the townhouses should be leased if it is
financially feasible to do so with an economic return to the City. No one wants empty, boarded up
units that will attract nuisances and provide a danger to the community. A resolution of the
relocation liability issue is major concern that must be factored into the economics of the project.
The BRAG felt the townhouses should ultimately be sold or leased for private housing. The
financial return to the City of leasing the apartments needs further thorough investigation.
Deconstruction should be studied in the coming months, with the possibility of selling the land to a
developer for a new development. Ms. Sause summarized the overall concerns of the BRAG with
the financial feasibility of the proposals, including any relocation liability, the project phasing, and
that the City should not be burdened with the renovation costs—all of which need further evaluation.
Alice Garvin, Chair of the BRAG Housing Working Group, explained that the housing units
presently cannot be torn down or sold. In the meantime, an economically feasible plan that provides
a revenue stream is needed. A Grubb & Ellis Study on the rental market in Alameda County states
the average vacancy rate in Alameda County is 3.48%. In reality, this is near zero, as there is always
a 2–3% vacancy factor due to normal tenant movement in the marketplace. A property management
firm would use startup funds to renovate 10–20 units with carpets, drapes, landscaping, etc. A model
apartment and rental office would be set up and a good tight management plan would need to be
formulated. It is projected that it would take two months to rent 10–20 units. The income from
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those units would be used to fix up the next 10–20 units. It is essential to have very strong
management, tight leases, and quality tenants. This is a short-term solution.
Speakers:
Bill Smith, Virtual Agile Manufacturing, stated that ARRA should be looking at properties where
people can both live and work.
Eve Roberson, an interested citizen, spoke against leasing the housing, stating that it is short-
sighted and a fatal blow to the 60% home ownership goal of the City Council.
Alan K. Beales, Rental Housing Association, spoke against leasing the housing, stating that the
housing is low quality, it would be a very expensive project, and would create terrific policing
problems.
Kurt T. Peterson, AIRR, asked questions regarding the difference between items 3-C and 3-D and
suggested that the meetings be televised, as less than 1/10 of one percent of the community is
involved in this discussion.
Dave Ryan, EFA West (U.S. Navy), answered Mr. Peterson’s questions on item 3-C, the Large
Parcel Master Lease, explaining that it will speed up the leasing process for commercial buildings on
the base as well as some of the housing, if the ARRA decides to lease the housing.
Amy Stone, Alameda Citizen, stated she was speaking neither for nor against the issue but voiced
her concerns, asked questions, and suggested that students from U.C. Berkeley might be a good
leasing population to consider.
Ann E. Mitchum, an interested citizen, stated that potential homes should be a vision for the public
to shape and that homes should be placed on the real estate market.
Don Roberts, an interested citizen, stated that he was appalled that the ARRA has abrogated
responsibility to the Executive Director to sign leases up to seven years, as that is too much power.
He also stated that the meetings should be televised.
Chair Appezzato opened up the issue for ARRA discussion. Lengthy debate, suggestions, and
questioning by the ARRA followed. On behalf of the Alameda Unified School District, Ardella
Dailey stated that the school district’s short-term issue is immediacy. In the past three years,
Woodstock School has lost 300 of its 600 students, with another 100 students from military families
due to leave at base closure. She stressed that 180–200 students is not a viable school and if it is
boarded up for two to three years, it poses a question as to what will happen not only to Woodstock
but to Miller School as well. The school district’s concern is to maintain this area as a viable
community. More discussion by the governing body followed.
Alternate Friedman made a motion that this issue require the vote of at least three Alameda
City Councilmembers. Member Kerr seconded the motion.
Chair Appezzato suggested that the five recommendations outlined on pages 2 and 3 of the staff
report be voted on separately with a sixth vote to send the issues to the Planning Board for review
and a seventh vote requiring the affirmative vote of three Alameda City Councilmembers. Alternate
Friedman suggested that in addition to leasing possibilities, staff also be directed to aggressively
investigate lease/option and home ownership possibilities. Assistant General Counsel McLaughlin
stated that there was a motion on the floor. Further discussion followed.
Chair Appezzato called for a vote on the motion that requires at least three votes be from the
Alameda City Councilmembers. The motion passed unanimously: 9.
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Original Recommendation 1: Consummate a master lease with the Navy for the East Housing that
would allow ARRA to sublease the property to a management company. The ARRA would not be
obligated to any expenses on the property unless it is subleased. This recommendation was
approved previously by the action taken on item 3-C.
Original Recommendation 2: Initiate action with the City Planning Department to rezone the East
Housing area to allow leasing to private tenants. This process will take 3–4 months to accomplish.
Member Daysog asked to include a moderate income aspect to reflect 85% moderate income and
15% other. Member Kerr asked that the wording of recommendation #2 be very broad, so the
Planning Board would have the option to review all possible uses for East Housing, including
boarding up and demolition as well as lease/option, right-of-first-refusal, renting, etc. Member
DeWitt asked if we were asking the Planning Board to redo everything that had been done by the
BRAG and the ARRA. Assistant General Counsel McLaughlin stated that the ARRA was requesting
that, as part of the rezoning process, the Planning Board consider the impacts that the rezoning will
have on the rest of the City, which is part of their normal process. It is then up the Planning Board
how much discussion and detail they wish to pursue. In response to Member DeWitt’s question on
how long this would take, Vice-Chair Swanson replied that if the process takes too long, interim
decisions will have to be made by the ARRA but the request here is to engage the Planning Board in
the process. Member Daysog advised Assistant General Counsel McLaughlin that he would contact
her regarding how he wanted to have the question of 85% moderate income, 15% other reviewed by
the Planning Board.
Member Kerr made a motion to initiate action at the Planning Board level to consider the
rezoning of the East Housing area and all of the possible uses thereof. The motion was
seconded by Member Daysog and passed with the following voice vote: Ayes: 8. Noes: 1 -
DeWitt.
Original Recommendation 3: ARRA staff should continue to analyze the revenue potential of the East
Housing leasing program. (Staff intends to apply for California Defense Matching Grant [DAM]
money to obtain consultant assistance in the analysis.)
Alternate Friedman moved to accept recommendation 3. The motion was seconded by
Alternate Alves. Alternate Alves then made a friendly amendment to the motion to change the
first sentence to read “ARRA staff should continue to analyze the revenue potential of the East
Housing.” Alternate Friedman accepted the amendment and it passed by unanimous voice
vote: 9.
Original Recommendation 4: If substantial revenue return can be projected, staff will issue a
Request for Proposals (RFP) to select a property management firm to manage and market the
property. We will also seek grant funds to obtain assistance in crafting an RFP and evaluating
proposals.
Alternate Friedman made a motion that if substantial revenue return can be projected, and it
is deemed that the leasing option is preferable, staff will bring an RFP to the ARRA for
approval to select a property management firm to manage and market the property. We will
also seek grant funds to obtain assistance in crafting an RFP and evaluating proposals. The
proposed contract resulting from the RFP will be brought to the ARRA governing body for
approval. The motion was seconded by Vice-Chair Swanson and passed by unanimous voice
vote: 9.
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Original Recommendation 5: Staff should simultaneously explore the prospects with the military for
leasing some of the housing units through a “set-aside” program or some other mechanism.
Vice-Chair Swanson made a motion to accept the original recommendation 5 as stated. The
motion was seconded by Alternate Friedman and passed by unanimous voice vote: 9.
New Recommendation 6: Alternate Friedman made a motion that staff be directed to fully
investigate all aspects of potential home ownership, including lease/option. Member DeWitt
seconded the motion. Member Daysog asked for an amendment to add “ . . . including
lease/option and affordable rents to moderate income families.” It was suggested that Member
Daysog make a separate motion. The unamended motion passed by unanimous voice vote: 9.
Member Daysog made a motion that staff be directed to investigate affordable rent options
that allow moderate income families to save for home ownership. After discussion, he
withdrew his motion.
ORAL REPORTS
4-H. Oral report from the Executive Director updating the ARRA.
Executive Director Kay Miller reported that (1) the Cooperative Services Agreement for the Police
and Fire services may be approved as early as January 7 at the City Council Meeting; (2) staff has not
been officially approached by DeCA [the commissary] but the BRAG has advised that if contacted,
we go forward with a normal short-term lease; (3) the logo chosen by the BRAG for Alameda Point
is being passed around; (4) a workshop on the cashflow analysis for the Economic Development
Conveyance is being scheduled for Saturday, March 15 from 8:30 a.m.–12:00 noon and a notice of
its location will be forthcoming; (5) the EDA grant pre-application went off today and the answer
will be received this Spring.
ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT)
Gratz Powers, an Alameda citizen and proponent of model airplane flying, discussed his group’s
wish have flying space at NAS Alameda and to have a national meet there. Chair Appezzato referred
Mr. Powers to work with Mr. Fred Framsted from the Recreation and Park Department. Mr. Powers
left copies of his correspondence for the Chair.
Bill Smith, Virtual Agile Manufacturing, spoke on research, energy, and environmental cleanup
matters and announced that it was Ann Mitchum’s birthday.
Ann Mitchum, concerned citizen, stated that ARRA should bulldoze, board up, or sell the housing
units. She is not in favor of developers but the private sector seeking grants to buy homes. She
suggested the ARRA become mortgagors with 7% interest loans with low or no down payment.
COMMUNICATIONS FROM GOVERNING BODY
Alternate Ornelas requested that when meetings need to be rescheduled, they are not rescheduled to a
night when another critical meeting is scheduled. Mayor Corbett wanted to attend the meeting but
she had to attend the San Leandro City Council meeting tonight. Executive Director Miller stated
that, upon polling the governing body, this was the only night a quorum could be assembled.
At 9:22 p.m., Chair Appezzato announced ADJOURNMENT TO CLOSED SESSION TO
CONSIDER: CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Property: building 530;
negotiating parties: ARRA and Tower Aviation; under negotiation: price and terms of payment;
Conference with Real Property Negotiator pursuant to subdivision (b) of Section 54956.8.
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The meeting was called back into general session at 9:37 p.m. It was announced that direction had
been given to counsel.
ADJOURNMENT
The meeting was adjourned by Chair Appezzato at 9:38 p.m.
Respectfully submitted,
Margaret E. Ensley
ARRA Secretary
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