CIC Resolution 03-110COMMUNITY IMPROVEMENT COMMISSION
RESOLUTION NO 03 -110
AUTHORIZING THE EXECUTIVE DIRECTOR OF THE COMMUNITY
IMPROVEMENT COMMISSION TO EXECUTE A SECOND AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE COMMUNITY IMPROVEMENT COMMISSION OF THE
CITY OF ALAMEDA AND CATELLUS DEVELOPMENT CORPORATION
WHEREAS, on June 1, 2000, the Community Improvement Commission ( "CIC ")
pursuant to Resolution #00 -88 authorized the Executive Director to execute a Disposition and
Development Agreement with the Catellus Development Corporation ( "Developer ") for the sale
and development of certain property at the Fleet Industrial Supply Center and East Housing
portion of the Naval Air Station, the ( "Property "); and
WHEREAS, on June 16, 2000, the parties executed the Disposition and Development
Agreement; and
WHEREAS, the CIC and the Developer have entered into other agreements related to the
Disposition and Development Agreement including a Joint Implementation Agreement dated
May 31, 2000, a Development Agreement dated June 6, 2000, and Construction Reimbursement
Agreement ( "CRA ") dated August 21, 2001 in order to assure the timely and orderly
development of the Property, as contemplated by the Disposition and Development Agreement;
and
WHEREAS, on December 18, 2001, the CIC pursuant to Resolution #01 -99 authorized
the Executive Director to amend the original Disposition and Development Agreement, as
amended by the First Amendment to the Disposition and Development Agreement to address the
Settlement Agreement by and between the City and Petitioners dated March 20, 2001; and
WHEREAS, on December 19, 2001, the parties executed the First Amendment to the
Disposition and Development Agreement (hereinafter referred to collectively as the "DDA); and
WHEREAS, pursuant to the DDA, the CIC agreed to Convey to Developer, and
Developer agreed to acquire from the CIC, the Property, in phases, on the terms and conditions
set forth in the DDA; and
WHEREAS, the project as originally envisioned has been significantly impacted by cost
and time delays resulting from the Settlement Agreement, the discovery and remediation of
additional chlordane found during demolition of East Housing and a significant downturn in the
commercial office and research and development markets; and
WHEREAS, in order to take advantage of a stronger residential market, it has been
necessary to modify the original takedown schedule for commercial and residential land and
phasing for demolition and infrastructure improvements to support a residential -only project; and
WHEREAS, because the residential project will have to bear more of the demolition and
infrastructure cost burden, increased shortfall funding requirements have necessitated revisions
to the DDA focusing on the need to enhance the feasibility of the residential project and provide
security for interim construction financing by the Developer to be repaid from project generated
revenues; and
WHEREAS, the CIC pursuant to the DDA and CRA have notified the Developer that
there is a Demolition and Infrastructure Shortfall relating to the Residential Project; and
WHEREAS, the Developer has agreed under their sole and absolute discretion as allowed
for in the DDA, to fund the Demolition and Infrastructure Shortfall on the terms and conditions
set forth in the proposed Second Amendment to the DDA; and
WHEREAS, the primary intent of the Second Amendment to the DDA is to provide the
Developer with a form of security on its funds that are being lent to the CIC to construct
Demolition and Backbone Infrastructure Improvements for the completion of the Residential
Project; and
WHEREAS, the CIC has determined that by amending the DDA: The CIC will further
encourage the productive use and timely redevelopment of underutilized former military base
property.
NOW, THEREFORE BE IT RESOLVED that the CIC finds the proposed Second
Amendment to the DDA with the Developer for the Sale and Development of the Fleet Industrial
Supply Center and the East Housing portion of the Naval Air Station consistent with the
Alameda Point Improvement Project, the Business and Waterfront Improvement Project, the
West End Community Improvement Project and the City of Alameda General Plan.
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Community Improvement Commission of the City of Alameda in a
Special Joint City Council and Community Improvement Commission meeting assembled on the 18`1'
day of March, 2003, by the following vote to wit:
AYES: Commissioners Daysog, Matarrese, Kerr and Chair Johnson - 4.
NOES: None.
ABSENT: Commissioner DeWitt -1.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said
Commission this 19th day of March, 2003.
Beverly Johnson, ahair
Community IMp cv'ment Commission
Lara Weisiger, Secretary,_!
Community Improvement Commission