Ordinance 30850
CITY OF ALAMEDA ORDINANCE NO. 3085
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER
TO NEGOTIATE AND EXECUTE AMENDMENTS AND OTHER
CORRESPONDING DOCUMENTS NECESSARY TO IMPLEMENT
THE TERMS OF A LEASE WITH PROXIMO DISTILLERS, LLC FOR
TEN YEARS WITH AN ADDITIONAL TEN YEAR OPTION IN A
PORTION OF BUILDING 22 LOCATED AT 2505 MONARCH
STREET AT ALAMEDA POINT
WHEREAS, Proximo is a privately owned, premium spirits importer based in
ersey City, New Jersey; and
WHEREAS, Proximo Spirits purchased the Hangar One vodka brand four
years ago; and
WHEREAS, for the past four years, production has been done by the
previous owner but by agreement, Proximo will now begin producing the brand;
and
WHEREAS, Proximo's goal with the five-year build out of Alameda is to triple
the production capacity of the Hangar One vodka brand and create a world class
brand and consumer experience in Alameda; and
WHEREAS, Proximo will be hiring staff for retail and operating the tasting
room and Proximo will need to build a full production staff for distilling and
bottling which will bring manufacturing jobs; and
WHEREAS, the lease is for ten years with an additional ten year option; and
WHEREAS, the Monthly Base Rent is $0.34 per square foot ($11,050) for
months 1 through 12, subject to abatement for months 1 through 6 during which
time Proximo shall construct certain Tenant Improvements in the Premises. Upon
completion of the Tenant Improvements Proximo will receive an Improvement
Credit up to a maximum of $10.00 per square foot ($325,000) in the form of a
Monthly Base Rent Offset credit in the amount of $2,850.87 every month
thereafter until the total amount of the base rent so offset is equal to the Total
Improvement Credit amount of $325,000. Monthly Base Rent will increase by
$0.01 per square foot annually during the initial Term. If Proximo exercises its
Renewal Option the Monthly Base Rent will be adjusted upward to 95% of the
then Fair Market Rent; and
WHEREAS, Proximo shall pay directly to service providers all costs of utilities
to the Premises, as defined in the Lease; and
WHEREAS, Proximo shall pay Tenant's share of Landlord's expenses and all
taxes (including possessory interest taxes) and 100% of all taxes levied on its
personal property; and
WHEREAS, under the lease Proximo is required to make a $11,050 deposit
and the lease contains 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 his designee is hereby
authorized, subject to approval by the City Attorney, (A) to execute, for and on
behalf of the City of Alameda, a lease with Proximo Distillers, LLC for ten years
with an additional ten year option in a portion of Building 22 located at 2505
Monarch Street at Alameda Point; (B) to negotiate and execute amendments,
revisions or addendums which do not materially change the lease terms,
including but not limited to rent and term, and which are required to implement
the intent of the lease; and (C) to negotiate and execute corresponding
documents necessary to implement the terms of the lease 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, for any reason, is 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 ';(lerk
I, the undersigned, hereby certify that the foregoing Ordinance was
duly and regularly adopted and passed by Council of the City of Alameda in
regular meeting assembled on the 4th day of February, 2014, by the following
vote to wit:
AYES: Councilmembers Chen, Daysog, Ezzy Ashcraft, Tam
and Mayor Gilmore — 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 5th day of February, 2014.
Lara Weisiger, Clerk
City of Alameda