1997-10-09 ARRA Minutes APPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Thursday, October 9, 1997
SPECIAL SESSION
The special session was convened at 5:30 p.m. with Chair Appezzato
presiding to address the following:
CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property: Alameda Naval Air Station
Negotiating parties: ARRA and U.S. Navy
Under negotiation: Economic Development Conveyance of property at NAS Alameda
Conference with Real Property Negotiator pursuant to subdivision (b) of Section 54956.8
Attendees: Chair Appezzato, Vice-Chair Swanson, Alternate Ornelas, Alternate Friedman, Member
Daysog, Member DeWitt, Member Kerr, Alternate Sweeney. Absent: Alternate Chang.
Chair Appezzato adjourned the special session at 6:35 p.m. Chair Appezzato convened the regular
meeting at 6:48 p.m. He announced that the board had met in closed session and gave instructions to
its negotiating team to begin negotiations with the Navy on the Economic Development Conveyance.
ROLL CALL
Present: Chair Ralph Appezzato, Mayor, City of Alameda
Sandré Swanson, District Director, 9th Congressional District
Albert DeWitt, Councilmember, City of Alameda
Barbara Kerr, Councilmember, City of Alameda
Tony Daysog, Councilmember, City of Alameda
James Sweeney, alternate to Karin Lucas, Councilmember, City of Alameda
Mark Friedman, alternate to Wilma Chan, Alameda County Board of Supervisors,
District 3 (relieved by Supervisor Chan at 7:10 p.m.)
Kathleen Ornelas, alternate to Ellen Corbett, Mayor, City of San Leandro
Absent: Henry Chang, Jr., alternate to Elihu Harris, Mayor, City of Oakland
Ex-officio: Lee Perez, Ex-officio, Base Reuse Advisory Group
Ardella Dailey, Ex-officio, Alameda Unified School District
CONSENT CALENDAR
3-A. Approval of the minutes of the special meeting and the regular meeting of August 6, 1997.
3-B. Approval of the minutes of the regular meeting of September 3, 1997.
3-C. Approval of the minutes of the special meeting of September 25, 1997.
3-D. Recommendation that the ARRA become an associate member of the Alameda Education,
Technology, and Business Consortium.
2-A
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Alternate Friedman moved approval of the Consent Calendar. The motion was seconded by
Member DeWitt and passed by the following voice vote: Ayes: 7. Noes: 0. Absent: 2 -
Member Swanson had left the room momentarily and Alternate Chang was absent.
ACTION ITEMS
4-E. Report recommending authorization for the Executive Director to finalize and execute a ten-
year lease for the Officers’ Club with the City of Alameda.
Speakers:
Charles Millman, Alameda resident, asked if this was “a finalization between the City and the Navy
or the Navy and a sublessee.” Executive Director Miller explained that this is an action between the
ARRA (who leases the property from the Navy) and the City of Alameda. Mr. Millman stated that
this action was repetitious because on April 17, 1997, Addendum 3 to the Large Parcel Lease was
signed between the Navy and the ARRA. The Executive Director clarified that the addendum to the
large parcel lease was the document by which the ARRA leased the land from the Navy. This
current action is for the ARRA to sublease the O’Club to the City of Alameda. Mr. Millman closed
by admonishing the ARRA to take their position seriously because they have made agreements with
the Navy to adhere to certain rules and regulations and stipulated certain rules and regulations with
subleasees. He further stated there have been infractions of rules in the double-digits. He
admonished the ARRA to stop the infractions with the Navy and the City of Alameda. Chair
Appezzato offered Mr. Millman the opportunity to meet with the City Attorney’s office.
Ann Mitchum, an interested citizen, cited her interest in leasing Building 75, the former bath house
next to the Officers’ Club. She had been told that it was not for lease because it would be part of the
City’s sublease of the O’Club and she was unclear whether this action included that building.
Member DeWitt motioned that ARRA authorize the Executive Director to finalize and execute
a ten-year lease for the Officers’ Club with the City of Alameda. The motion was seconded by
Alternate Sweeney and passed by unanimous voice vote: 7.
4-F. Report recommending authorization for the Executive Director to finalize and execute a ten-
year lease for building 530 with Tower Aviation Services.
Chair Appezzato welcomed Tower Aviation, whose president lives in Alameda, clarifying that the
firm repairs spare parts and would not be flying in any aircraft. They will bring 100 employees and
will expand to 250 employees within five years. He complemented staff and BRAG for bringing this
company from Oakland Airport to Alameda Point. In response to questions posed from Member
Daysog regarding the equipment appraisal, Ed Levine, ARRA Facilities Manager, answered that the
appraisal has been done on a large portion of the equipment with some additional appraisal work to
be finished before executing the lease. The practice is to establish the value of the equipment based
on the appraisal. The lease allows for adding and deleting equipment over the term of the lease and
is a dynamic process for amortizing the appraised value of the equipment over the term of the lease.
Member DeWitt stated that this is going to be one of our major tenants and is the first opportunity for
former Depot employees to work at the base again in their trade and skill.
Member Daysog motioned that ARRA authorize the Executive Director to finalize and execute
a ten-year lease for building 530 with Tower Aviation Services. The motion was seconded by
Alternate Sweeney and passed by unanimous voice vote: 7.
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4-G. Report from the Executive Director recommending authorization to finalize negotiations and
execute a 15-year interim lease with the San Leandro Shelter for Women and Children.
Executive Director Miller stated that this is identical to the action taken the previous month for
United Indian Nations. Having been accepted for funding from HUD, the San Leandro Women’s
Shelter must demonstrate site control to receive the funding. The property includes the Navy Lodge
and its associated parking lot.
Member Daysog motioned that ARRA authorize the Executive Director to finalize and execute
a 15-year interim lease with the San Leandro Shelter for Women and Children. The motion
was seconded by Member Swanson and passed by the following voice vote: Ayes: 7. Noes: 1 -
Kerr.
4-H. Recommendation to the ARRA on prioritizing Navy environmental cleanup projects to support
the Economic Development Conveyance business plan/application.
Executive Director Miller stated that this does vary from the Navy plan in order to synchronize it
with the development phasing plan contained in the EDC business plan. It gives formal notice to the
Navy the order of cleanup needs to be changed slightly to correspond to development. Specifically,
cleanup of Operational Unit #2 is not as high a priority to ARRA as Operational Unit #3 and those
two priorities should be switched. Also, the refuge landfill cleanup should be undertaken after some
of the development priorities. Chair Appezzato added that this was an action to ask the Navy to
clean up those areas which we want to develop first. Member Daysog stated that he preferred the
Navy’s timetable in large part because of its proximity to the neighborhoods, which he would like to
see cleaned up first.
Member DeWitt moved the recommendation, which was seconded by Member Chan and
passed by the following voice vote: Ayes: 7. Noes: 1 - Daysog.
4-I. BRAG recommendation to the ARRA on the appointment of a new BRAG Vice-Chair and
Community Involvement Work Group Chair.
Member Daysog motioned acceptance of the appointments. The motion was seconded by
Member DeWitt and passed by unanimous voice vote: 8.
Diane Lichtenstein, new Vice-Chair of the BRAG and Andrine Smith, new Chair of the Community
Involvement Work Group accepted their appointments and expressed their appreciation for the
opportunities presented. Chair Appezzato expressed his regret over the resignation of Helen Sause
because of a possible conflict of interest presented by her recent promotion. He restated that the
ARRA would not be where it is today without the BRAG and thanked them for their continuing
commitment.
ORAL REPORTS
5-H. Oral report from the BRAG updating the ARRA on current activities.
BRAG Chair Lee Perez thanked the governing body for accepting the BRAG’s recommendation on
the two position replacements. He stated that Helen Sause will continue her input as a citizen and
the BRAG wishes her every success in her new position with the San Francisco Redevelopment
Agency. This month, several BRAG members met with Jim Flint, City Manager and Bob LaGrone,
Deputy City Manager, Alameda Point to discuss where the BRAG is and how to improve
communications, as well as to discuss the future role of the BRAG in relation to City boards and
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commissions. Work Groups continue to work on the airfield and concerns with Fish & Wildlife and
are working on a recommendation regarding the museum proposal. The September 25 Town
Meeting was the best town meeting thus far. Mr. Perez ended by stating that the BRAG feels very
comfortable with where they are and look forward to redefinition of their role.
5-I. Written report from the Executive Director.
Speaker:
Gary McAfee, an interested citizen, stated that the base is a very unusual site for tourism not only in
the area but in the world. He has submitted applications to test his theory that museums can come
together to form a central entity to use most, if not all, of the base for ships, planes, trains, household
artifacts, etc. but has received no cooperation the BRAG and the ARRA. He has also had no
cooperation from labor or non-profit groups with a high quality of artifacts because they are
uncertain about working with other groups in a commercial venture. He stated that developing the
FISC would cripple any potential for tourism on the base.
Executive Director Miller offered to answer any questions on her written report. She stated that the
letter from Fish & Wildlife mentioned in item 3—their response to our use of the airfield— had been
received today and copies were distributed to the ARRA. Chair Appezzato stated that he and the
Executive Director had met with Deputy Secretary of the Interior John Garamendi and officials of
the Fish & Wildlife Service, who had indicated that they will not allow aviation activities on the
refuge runway. They indicated that if we wish to use the East/West runway parallel to the Estuary
(runway 7-25), they would work with ARRA on determining leasing arrangements for the portion of
the runway that falls within the refuge. In conjunction with item 6, the BCDC designation, the
seaport designation has been lifted from that 220 acres so that it is now available for the City of
Alameda to develop, with the possibility of a golf course or other uses. At this point, aviation use for
aircraft at the base is non-existent.
Member Kerr mentioned that there might be a serious objection to use of the east-west runway
because the planes would have to come in very low and loud along the estuary. Member Swanson
indicated that if there is a public and political will to push this issue, the Fish & Wildlife Service
position does not necessarily have to be the final decision. However, if there is no will to pursue this,
then a final decision on the airfield issue must be made so that we can go forward with a leasing
strategy. Member Kerr stated that Fish & Wildlife based their analysis on a maximum of 30 flights a
day and 727s and 737s leasing the hangars. She feels that there is some “wiggle room” in the letter
and agreed that a decision needs to be made.
Member Chan requested that staff write thank you letters to Congressman Dellums, Senator Lee,
Assemblyman Perata, and the Port of Oakland because it was a very difficult year-and-a-half battle
for all involved and their participation should be recognized. Member DeWitt asked that EBCRC,
who conducted the study that showed a port was infeasible, also be thanked. Executive Director
Miller agreed that without this tremendous collaborative effort, we would not have succeeded in
getting the port priority designation lifted.
Member Daysog moved to send a letter of thanks to all parties involved in the collaborative
effort to get the seaport designation lifted. The motion was seconded by Alternate Ornelas
and passed by unanimous voice vote: 8.
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Vice-Chair Swanson requested a friendly amendment that the BRAG also receive a letter of thanks
for their work and support in helping get the seaport designation lifted.
Member DeWitt asked for an update on the status of the application by the Aircraft Carrier Hornet
Foundation (ACHF) to obtain the Hornet from the ship donation program. Executive Director Miller
stated that she had heard from the Hornet Foundation that NAVSEA has informally told ACHF that
their recommendation to the Secretary of the Navy will be for approval of the Hornet donation. The
question of whether they can get a waiver from the 60-day Congressional Review is yet to be
resolved. Vice-Chair Swanson indicated that staff in Congressman Dellums’ Washington, D.C.
office is working with ACHF to obtain the waiver.
5-J. Oral report from the Executive Director (non-discussion items).
Executive Director Miller introduced Nanette Banks, the ARRA’s new Sr. Management Analyst
(replacing Julie Mantrom), who will be working on the OEA, EDA, and other grants and tracking
budgets. Ms. Miller expressed her regret that Norma Bishop, our Base Transition Coordinator, was
not at the meeting to officially say goodbye to the ARRA. The Executive Director proposed that a
resolution be presented for board approval at the November meeting. The Base Transition
Coordinator position has been invaluable in problem-solving with federal agencies and running
interference with the Nav. Even though Ms. Bishop is gone, her contribution should be recognized.
Chair Appezzato requested that a resolution be prepared.
ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT)
Speakers:
Richard Neveln, co-founder of Nimitz Airfield Society and environmentalist, stated that it is human
activity on the most active runway (runway 3-1) that has contributed to the safety of the least terns by
keeping the raptors away. Due to the inactive airfield, Golden Eagles were able to decimate the
canadian gosling population this year. He suggested that minimal use of the airfield was necessary
for preservation purposes.
Ann Mitchum, Alameda resident, stated that base closure is besieged by politics, urged citizens to
attend the ARRA meetings the first Wednesday of each month to participate in the decision-making
process, and asked why the City is getting into the catering business with the O’Club sublease.
Bill Smith, interested citizen, addressed the problem of East Housing, recycling and reuse, and
fixing up the units to provide alternative housing for employees working on the base.
COMMUNICATIONS FROM THE GOVERNING BODY
Chair Appezzato read a commendation from Clifford Archer, President of Tower Aviation Services,
expressing his appreciation for the outstanding effort, innovative leadership, problem-solving, and
“dogged determination” of Ed Levine in negotiating and putting together Tower’s lease at Alameda
Point.
Vice-Chair Swanson stated that the EBCRC has been working actively to help base workers become
business owners and the commission has helped start twelve businesses to date. Continuing that
effort, EBCRC has won a grant to assist other base workers to become business owners. He
announced that tomorrow morning, October 10 at 10:00 a.m. at the Oakland Federal Building, there
will be a bidder’s conference for those business planners who would be interested in working with
this project. There is about $350,000 in contracts available for business planners.
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Member Sweeney indicated that he would like an agenda item and staff report concerning an
aggressive national search for a well-funded, accredited educational institution. This might include
using the internet or a slick brochure. Chair Appezzato requested a staff report be prepared.
ADJOURNMENT
The meeting was adjourned by Chair Appezzato at 7:49 p.m.
Respectfully submitted,
Margaret E. Ensley
ARRA Secretary
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