Resolution 12827CITY OF ALAMEDA RESOLUTION NO.
12827
SUPPORTING THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA)
APPLICATION FOR LOCAL AGENCY MILITARY BASE RECOVERY AREA (LAMBRA)
DESIGNATION FROM THE CALIFORNIA TRADE AND COMMERCE AGENCY
WHEREAS, the State of California has passed legislation
authorizing the designation Of Local Agency Military Base
Recovery Areas (LAMBRA); and
WHEREAS, designation as a LAMBRA is necessary to:
1. Facilitate and accelerate the economic recovery from
the economic impact associated with the closure of the
Alameda Naval Air Station, and
2. Attract private sector investment to the application
area, and
3. Create job opportunities for displaced, dislocated and
eligible participants directly or indirectly affected
by base closure; and
WHEREAS, LAMBRA designation provides California tax
incentives to benefit employers locating their businesses on
closed military bases; and
WHEREAS, the California tax incentives include:
1. Credit for sales and use tax paid on qualified
property, and
2. Credit for hiring qualified employees, and
3. Business expense deduction for the cost of qualified
property, and
4. Net operating loss carryover; and
WHEREAS, the City of Alameda is fully committed to assisting
with the conversion and reuse of the Alameda Naval Air Station;
and
WHEREAS, the City of Alameda is a full partner in the
Alameda Reuse and Redevelopment Authority; and
WHEREAS, all of the land and buildings within the proposed
LAMBRA application area are within the incorporated territory of
the City of Alameda; and
WHEREAS, the City of Alameda is committed to the preparation
of a joint EIR /EIS on the Community Reuse Plan by the Navy
pursuant to CEQA (Public Resource Code sections 21000 et seq.)
and associated guidelines (14 C.C.R. sections 15000 et seq.); and
WHEREAS, the City of Alameda will provide such regulatory
and program incentives under its jurisdiction as contemplated by
the LAMBRA application and attached to this Resolution as Exhibit
1; and
WHEREAS, the City of Alameda has designated City personnel
to work with the ARRA and LAMBRA businesses to facilitate the
location and expansion of businesses within the application area.
NOW, THEREFORE, BE IT RESOLVED that the City of Alameda does
hereby resolve to complete all actions stated within the LAMBRA
application which applies to it should the Alameda Naval Air
Station be awarded the LAMBRA designation by the California Trade
and Commerce Agency.
EXHIBIT 1
City of Alameda
Description of City of Alameda Incentives
in Support of the Alameda Reuse and Redevelopment Authority's
Local Agency Military Base Recovery Area (LAMBRA) Application
DESCRIPTION OF CITY OF ALAMEDA LAMBRA INCENTIVES
Expedited Application Processing
The City will reduce the application processing time by 50% for LAMBRA businesses. The
application processing time frame for LAMBRA projects will range from 8 to 16 weeks compared
to the City's current time frame of 14 to 38 weeks. This reduction will be accomplished through the
following changes to the City's administrative procedures:
Establishment of LAMBRA Project Review Committee: The City will form a LAMBRA
Project Review Committee (LPRC), consisting of designated responsible staff from the City
Manager's Office, Planning, Engineering, Building Inspections, Central Permits Office, Police,
Fire, Community Development, Bureau of Electricity, City Attorney's Office, and the ARRA
LAMBRA Manager. The LPRC will meet regularly to conduct pre- application review, check
applications for completeness, and recommend changes and conditions for approval for
LAMBRA projects.
Master Discretionary & Environmental Review: The City will prepare a Master Use
Permit for interim uses and a Master Environmental Impact Report for the Alameda NAS
Reuse Plan, to be approved by the ARRA and the Planning Board. Individual applications
that are consistent with these master approvals can be approved with a minimum of additional
processing, in most cases by staff action.
Concurrent Review: When the LAMBRA applicant provides multiple sets of plans, City
departments will review them concurrently, rather than sequentially.
Following are the basic steps the City will take to review LAMBRA projects. The time estimates do
not include the time required by applicants to prepare materials, nor do they include the time required
in the event that a project requires an Environmental Impact Report. They also do not include the
time required for review by government agencies other than the City of Alameda.
Identify Project as Within the LAMBRA: Planning and Central Permit Office staff will
be trained to identify quickly project locations within the LAMBRA. Staff will provide
a LAMBRA brochure and other pertinent information to potential LAMBRA applicants.
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Pre - Application Conference: The LPRC will discuss the potential project at its regular
meeting, to provide the LAMBRA business with early information about potential
prospects and problems with the proposed project.
For LAMBRA Business: 1 week
For Non - LAMBRA Development: No
Equivalent Procedure
Review of Application for Completeness: Once the application has been received, the
LPRC will review it for completeness, and inform the LAMBRA business what additional
information is required to complete the application.
For LAMBRA Business: 2 weeks 1 For Non - LAMBRA Business: 4 weeks
Review of Application for Merits: Staff of the departments listed above will review the
LAMBRA project to determine what changes should be made and what conditions should
be imposed. The LPRC will meet to discuss and sign off on staff recommendations.
I For LAMBRA Business: 2 weeks 1 For Non - LAMBRA Business: 4 weeks I
Action on Application:
Staff Action: Relatively simple projects which are consistent with the Master Use
Permit (for interim uses) or the Reuse Plan/Master DR (for permanent uses) can be
acted on by staff. If action on a LAMBRA project is appealed to the Planning Board,
more time will be required.
If no public notice is required:
For LAMBRA Business: 1 week 1 For Non- LAMBRA Business: 2 weeks
If public notice is required:
For LAMBRA Business: 2 weeks ( Non - LAMBRA Business: 3 weeks
Action by the Planning Board: Projects which are more complex, which differ
from the Master Use Permit (for interim uses) or the Reuse Plan (for permanent
uses), or which require a Negative Declaration for environmental review require
action by the Planning Board. If Planning Board action on a LAMBRA project
is appealed to the City Council, or if an Environmental Impact Report is
necessary, more time will be required.
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For LAMBRA Business: 8 weeks 1 For Non- LAMBRABusiness: 12 -24 weeks 1
If the project is categorically exempt:
For LAMBRA Business: 4 weeks 1 Non - LAMBRA Business: 12 weeks
If the project requires a Negative Declaration:
Building Permit Review: The Central Permits Office (CPO) will administer expedited,
concurrent review of building permits by the City departments for LAMBRA businesses.
For Tenant Improvements: For projects which require changes in an existing
building for a specific use.
For LAMBRA Business: 1 week 1 For Non LAMBRA Business: 2 weeks
For New Construction:
For LAMBRA Business: 2 weeks
For Non-LAMBRA Business: 4 weeks
Issuance of Certificate of Occupancy: After completion of construction, the LAMBRA
business will request issuance of a Certificate of Occupancy by the CPO. The CPO will
administer expedited, concurrent review by the City departments.
For LAMBRA Business: 1 week
1 For Non - LAMBRA Business: 2 weeks
Total Time Required for City Processin
g
For LAMBRA Business
8 -16 weeks
For Non- LAMBRA Business
14 -38 weeks
Exemptions, Reimbursements & Licenses
Partial Exemption from Improvement Tax: The City's Improvement Tax is one percent
of the value of new construction. LAMBRA businesses will receive a 50% exemption from
this fee. For every one million -dollar value of construction planned by LAMBRA businesses,
the 50% exemption will save the business $5,000 in improvement tax.
Reimbursement of Unsecured Property Tax: State law provides for two kinds of
unsecured property taxes that will have a special impact on businesses seeking to locate at
NAS Alameda. These are the possessory interest tax and the tax on the unsecured property
such as business equipment. The possessory interest tax is effectively a substitute for
property tax imposed when a private party leases government -owned property. The unsecured
property tax returns approximately 27% to the City for every $1 tax paid to the County. Fifty
percent of the unsecured property tax will be reimbursed to those LAMBRA businesses that
generate at least $50,000 per year in sales tax to the City.
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Business License Fees: LAMBRA businesses that generate $23,750 in local sales and use
tax in the City (equivalent to $2.5 million taxable sales) will receive a 50% exemption of the
City's business license tax liability. LAMBRA businesses that generate $47,500 in local sales
and use tax in the City (equivalent to $5 million taxable sales) will receive a 100% exemption
of the City's business license tax liability. The exemption will apply to businesses which
employ at least 20 employees who work at least 30 hours per week, 12 months a year in the
year for which the credit is applied. The City's business license fee is 40 cents per $1,000 in
gross receipts.
Redevelopment
A Redevelopment Project Area will be formed for NAS. On January 18, 1996, the Alameda City
Council created a redevelopment survey area encompassing all of the NAS lands proposed for
LAMBRA designation. At the ARRA and City's request, the California Legislature adopted AB
3129, special legislation that tailors the redevelopment plan adoption process to particular needs of
the proposed LAMBRA area.
The benefit of redevelopment is that it allows the capture and reinvestment of all new property tax
that would otherwise leave the City. Redevelopment financing depends upon the success of and the
investment by the private sector. Redevelopment derived tax increment can be used to assist
LAMBRA businesses in a variety of ways, including such things as:
• Acquiring land or buildings;
• Assisting development by providing favorable financing or revolving loan programs for
commercial projects;
• Funding facade improvement loan programs;
• Financing transportation improvements;
• Developing parking lots and streetscape improvements to improve the appearance and
function of commercial areas;
• Funding or constructing public infrastructure; and,
• Developing or improving community facilities and public amenities that serve the area.
An Implementation Plan will be prepared as part of redevelopment plan adoption based on the needs
and projected tax increment revenues of the LAMBRA area.
The City's Community Development Department will designate a staff person, Sue Russell, AICP,
Development Specialist, to be the LAMBRA Liaison to the ARRA. In addition, Community
Development Department will provide a Business Development Facilitation Service, with a focus on
the LAMBRA area. Development Manager, John Doll, will participate in meetings of the LAMBRA
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Project Review Committee, and be available to work with LAMBRA businesses to shepherd complex
projects through the permit/development approval process.
Bureau of Electricity
The City of Alameda's Bureau of Electricity is a municipal electric utility serving the entire City of
Alameda, including NAS Alameda. The Bureau of Electricity is fully committed to assisting with the
reuse and redevelopment of the base. The Bureau of Electricity is prepared to offer the following
incentives and assistance programs to LAMBRA businesses:
Attractive Utility Rates and Economic Incentive Rate: In addition to the Schedule ED
rate described below, the Bureau of Electricity's per kilowatt electric rate is typically 3 -5%
lower for commercial and industrial accounts than communities served by Pacific Gas &
Electric Company. It is the Bureau's objective to maintain this lower rate.
The City of Alameda, Bureau of Electricity will work with LAMBRA businesses to apply the
Schedule ED rate to their business. The rate incentive provides a five -year declining rate
discount applied to all charges under the standard general service rate for qualifying
customers. The discount is as follows:
First 12 months 25%
Second 12 months 20%
Third 12 months 15%
Fourth 12 months 10%
Fifth 12 months 05%
Loans for Infrastructure Upgrades: Based on individual LAMBRA businesses' needs, the
Bureau of Electricity will consider applications for business loans from the Bureau's
Revolving Loan Fund (RLF). The RLF is a new program offered by the Bureau targeted to
businesses locating in the LAMBRA. Use of the loan funds will be restricted to infrastructure
upgrades and loan amounts would normally be limited to $40,000.
Transformer Deposit Fee Waiver: The Bureau of Electricity will waive the $10,000 to
$25,000 transformer deposit fee for LAMBRA businesses.
Business Assistance & Technical Support: Gene Keller, Marketing Coordinator with the
Alameda Bureau of Electricity, will be assigned as Project Manager for all electric issues and
services to LAMBRA businesses. In addition to working with LAMBRA businesses to
secure the Bureau's economic incentive rate, Mr. Keller will work with LAMBRA businesses
to discuss overall energy requirements, energy efficiency and auditing programs, rebate
programs, contracts, rates and scheduling, and will assist the LAMBRA business with any
service delivery problems or expansion requirements.
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Energy Efficiency Upgrades: For LAMBRA businesses the Bureau of Electricity will
provide rebates calculated at six cents per kilowatt hour saved during one year of operation
for equipment upgrades in excess of State of California, Title 24 requirements. Rebates could
be in the thousands of dollars per LAMBRA business.
Retired Equipment Removal: As a service to LAMBRA businesses, the Bureau of
Electricity will arrange for the disposal of obsolete transformers, switches, or breakers that
are oil- filled (and potentially PCB - contaminated). This will be done at no cost to the
LAMBRA business. Savings to the LAMBRA business could be in the thousands of dollars
for this service.
Marketing Assistance: The Bureau will assist LAMBRA businesses in marketing efforts
where consistent with City and Bureau activities. This will include write -ups about business
activities and products, inclusion of business product descriptions and services in letters and
brochures published by the Bureau in support of strategic business initiatives, and advice
relating to marketing activities and opportunities for interested LAMBRA businesses.
The Bureau of Electricity currently has an Internet Web site, and will work with LAMBRA
businesses (as appropriate) to develop hyper -links between the Bureau and the LAMBRA
business Web sites.
Disconnect- Reconnect Fee Waiver: The Bureau of Electricity will waive the $150
disconnect- reconnect fee for all LAMBRA businesses.
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I, the undersigned, hereby certify that the foregoing
Resolution was duly and regularly adopted and passed by the Council
of the City of Alameda in regular meeting assembled on the 15th
day of October , 1996, by the following vote to wit:
AYES:
NOES:
ABSENT:
Councilmembers Arnerich, DeWitt, Lucas
and President Appezzato - 4.
None.
None.
ABSENTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 16th day of October , 1996.
Dianetalsch, City Clerk
City of Alameda