Ordinance 3158CITY OF ALAMEDA ORDINANCE NO. 3158
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER
TO EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE
TERMS OF A TEN YEAR LEASE WITH ONE FIVE -YEAR
EXTENSION OPTION WITH LA COSTA PACIFICA, INC. dba
URBAND LEGEND CELLARS, FOR BUILDING 25, UNIT 300,
LOCATED AT 1951 MONARCH STREET AT ALAMEDA POINT
WHEREAS, Urban Legend Cellars (ULC) is an independent Urban Winery with
a very small hands -on crew that produces their small lot of wines from a variety of
vineyard sources from all over California; and
WHEREAS, ULC is a classic "mom and pop" business led by a husband and
wife team founded in 2008 with first sales in 2010; and
WHEREAS, ULC has a growing wholesale business with distribution in Whole
Foods, Nugget Markets and distribution in Illinois. They also have strong direct to
customer retail programs; and
WHEREAS, ULC's current sales consist of 65% retail and 35% wholesale; and
WHEREAS, ULC has outgrown its current facility of approximately 2,400 square
feet (sf) and has assets scattered in multiple location for an approximate total of
7,000 sf; and
WHEREAS, Building 25 will allow them to consolidate operations in a single
location and accommodate long term expansion plans, which include a new cider
joint venture; and
WHEREAS, Building 25 is located on the very outskirts of Spirit's Alley but has
been a location piquing the interest of fledgling breweries and wineries interested in
capitalizing on the notoriety of the district; and
WHEREAS, many of the predecessors have been hindered by the large
investment needed to bring the infrastructure to the site over the proposed term of
the lease. Staff has generally only offered a ten year term in this location because
of community and developer discussions about the longevity of the building because
of its impact on view. corridor's � and - potentially including the building footprint in the
DePave Park; and
WHEREAS, ULC has requested a ten year lease with one five -year option to
renew for two reasons: first, they need the time to finance the overall investment in
the property. The tenant has done extensive due diligence on what it will take to
bring gas and high speed internet to its location as well as address the health and
safety code issues related to public access. Second, they believe their facility will
be an amenity to the park development and will increase, not hinder community
enjoyment of the park and open space; and
WHEREAS, Currently, ULC has over 400 quarterly wine club customers with
over $3500 weekend sales; and
WHEREAS, Building 25, Unit 300 consists of approximately 18,160 square feet
of rentable space; and
WHEREAS, ULC's use of Building 25 will be for wine, cider and distilled
beverage production, storage, tasting room activities and related administrative
functions; and
WHEREAS, the rent collected from the subtenant pays for rent and utilities for
the building; and
WHEREAS, the monthly base rent is $6,356 to $11,926 for months one to one
hundred twenty.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of
Alameda that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or his designee is hereby
authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease
with La Costa Pacifica, Inc. dba Urban Legend Cellars, for Building 25 located at
1951 Monarch Street at Alameda Point for ten years, with one five -year extension
option subject to such technical or clarifying revisions as are reasonably
determined necessary by the City Manager and approved by the City Attorney,
and the City Clerk is hereby authorized and directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this
ordinance if, for any reason, held to be invalid or unconstitutional, such decision
shall not affect the validity or constitutionality of the remaining portions of this
ordinance. The City Council of the City of Alameda hereby declares that it would
have passed this ordinance, and each section, subsections, clause, or phrase
hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases are declared to be invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the
expiration of thirty (30) days from the date of its final passage.
Presiding Officer of the City Council
Attest:
Lara Weisiger, City,Clerk
1, the undersigned, hereby certify that the foregoing Ordinance was duly
and regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on the 19th day of July, 2016, by the following vote to wit:
AYES: Councilmembers Daysog, Ezzy Ashcraft, Matarrese,
Oddie and Mayor Spencer — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 20th day of July, 2016.
Lara Weisiger, 6ity Clerk
City of Alameda
APPROVED AS TO FORM:
an City Attorney
Cit f Alameda