Ordinance 3211CITY OF ALAMEDA ORDINANCE NO. 3211
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER TO
EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS
OF A TEN YEAR LEASE WITH TWO TEN-YEAR EXTENSION
OPTIONS AND A RIGHT OF FIRST OFFER TO LEASE SUITE 100
WITH FACTION BREWING COMPANY, LLC A CALIFORNIA LIMITED
LIABILITY COMPANY, FOR BUILDING 22, SUITE 200, LOCATED AT
2501 MONARCH STREET AT ALAMEDA POINT.
WHEREAS, Faction Brewing Company, LLC is a brewery led by a team with
extensive brewing experience throughout northern California and produces a variety of
beers which include Pale Ale, IPA, Red, Pilsner, and Stout; and
WHEREAS, Faction Brewing Company, LLC entered into a lease agreement with
the City of Alameda to occupy a portion of Building 22 in 2012 and has been open to the
public since early 2013 ; and
WHEREAS, this lease agreement with Faction Brewing Company, LLC will replace
their current lease agreement from 2012; and
WHEREAS, Building 22, Suite 200 consists of approximately 32,500 square feet
of rentable square feet; and
WHEREAS, the Premises will be used as a brewery, tasting room and production
facility, and sales and office uses related thereto; and
WHEREAS, Faction Brewing Company, LLC will occupy a portion of Building 22
and have the right, on an exclusive basis, to have its employees and visitors park in the
adjacent paved areas; and
WHEREAS, the base rent over the ten years of the lease is $20,150 for year one,
$20,754.50 for year two, $21,377.14 for year three, $22,018.45 for year four, $22,679 for
year five, $23,359.37 for year six, $24,060.15 for year seven, $24,781.96 for year eight,
$25,525.42 for year nine, and $26,291.18 for year ten; and
WHEREAS, the proposed lease contains two 10 -year extension options and the
right to first offer for Suite 100 of Building 22 if the premises becomes vacated; and
WHEREAS, Faction Brewing Company, LLC will be required to provide a security
deposit in the amount of $12,025 and the lease contains the standard insurance,
indemnity, and assignment clauses.
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 her designee is hereby
authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease with
Faction Brewing Company, LLC a California Limited Liability Corporation, for Building 22
at Alameda Point for ten years with two ten-year options to renew and a right of first offer
for Suite 100 of Building 22, 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 Offic r of the City Council
Attest:
16, ,� �'
Lara Weisiger, Ci Jerk