Ordinance 3181CITY OF ALAMEDA ORDINANCE NO. 3181
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER TO
EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS
OF A FIVE YEAR LEASE WITH TWO FIVE -YEAR EXTENSION
OPTIONS AND A RIGHT OF FIRST NEGOTATION TO PURCHASE
WITH SAILDRONE, INC, A DELAWARE CORPORATION, FOR
BUILDING 12, LOCATED AT 1050 WEST TOWER AVENUE AT
ALAMEDA POINT
WHEREAS, Saildrone, Inc. designs and manufactures wind and solar powered
autonomous vehicles used for cost - effective ocean data collection; and
WHEREAS, Saildrone, Inc. entered into a sublease agreement with Artemis Racing
USA, Inc. to occupy a portion of Building 12 on February 09, 2016; and
WHEREAS, Saildrone, Inc. is currently in their sublease agreement which is set to
expire August 31, 2017; and
WHEREAS, this lease agreement with Saildrone, Inc. will replace that current
sublease agreement; and
WHEREAS, Artemis Racing USA, Inc.'s lease for Building 12 is set to expire August
30, 2017; and
WHEREAS, Saildrone, Inc. is currently negotiating a new sublease agreement with
Artemis Racing USA, Inc. so that Artemis Racing USA, Inc. may continue to occupy their
portion of Building 12; and
WHEREAS, Saildrone, Inc. will have the right to occupy the portion of Building 12
vacated by Artemis Racing USA, Inc. if Artemis Racing USA, Inc. chooses to not enter
into a sublease agreement with Saildrone, Inc.; and
WHEREAS, Building 12 consists of approximately 110,000 square feet of rentable
square feet; and
WHEREAS, the Premises will be used for engineering, research and development,
manufacturing, assembly, and related office use; and
WHEREAS, Saildrone, Inc. will occupy Building 12 and have the right, on an exclusive
basis, to have its employees and visitors park in the adjacent paved areas; and
WHEREAS, Saildrone, Inc. will also be allowed to use a portion of Taxiway H for
access to the Seaplane Lagoon for the purposes of launching and retrieving their
autonomous vehicles; and
WHEREAS, the base rent over the five years of the lease is $60,000 for year one,
$61,800 for year two, $63,654 for year three, $65,564 for year four, and $67,531 for year
five; and
WHEREAS, the proposed lease contains two 5 -year extension options and a right of
first negotiation to purchase if the City decides to sell the building; and
WHEREAS, Saildrone, Inc. will be required to provide a security deposit in the amount
of $67,531 and the lease contains the standard insurance, indemnity, assignment and
termination clauses the ARRA required in its leases and compliant with the Lease in
Furtherance of Conveyance (LIFOC).
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
Saildrone, Inc. a Delaware corporation, for Building 12 at Alameda Point for five years
with two five -year options to renew and a right of first negotiation to purchase, 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_(3�) �ys_fr_om_ the _date_of its final_passagQ_
Presiding Officer of the City Council
Attest:
Gam
Lara Weisiger, Mi Clerk
I, 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 20th day of June, 2017, by the following vote
to wit:
AYES: Councilmembers Ezzy Ashcraft, Matarrese, Oddie,
Vella 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 21 st day of June, 2017.
Lara Weisige , ity Clerk
City of Alameda
APPROVED AS TO FORM:
Jan . Kern, City Attorney
City of Alameda