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2000-02-02 ARRA PacketAGENDA Regular Meeting of the Governing Body of the Alameda Reuse and Redevelopment Authority * * * * * * ** Alameda City Hall Council Chamber, Room 390 2263 Santa Clara Avenue Alameda, CA 94501 Wednesday, February 2, 2000 Meeting will begin at 5:30 p.m. City Hall will open at 5:15 p.m. 1. ROLL CALL 2. CONSENT CALENDAR 2 -A. Approval of the minutes of the regular meeting of the November 3, 1999. 2 -B. Mid -Year Alameda Point Budget report from the Deputy City Manager. 3. ACTION ITEMS 3 -A. Report and recommendation from the Deputy City Manager to amend sections 2.02 and 2.03 of the ARRA By -laws to establish the Mayor and Vice -Mayor as Chairperson and Vice - Chairperson of the ARRA Governing Body respectively. 3 -B. Report and recommendation from the Deputy City Manager to amend ARRA Resolution 010 to establish a regular annual meeting of the ARRA Governing Body for the third Tuesday in June and allow for special meetings as- needed. 3 -C. Report and recommendation from the Deputy City Manager to authorize the Executive Director to execute a 10 -year lease with two five year options to renew on Building 23 with West Coast Novelty Corporation. 3 -D. BRAG recommendation to the ARRA Governing Body against including an option to purchase in Alameda Point leases prior to the adoption of the General Plan Amendment. 4. ORAL REPORTS 4 -A. Oral report from BRAG. 4 -B. Oral report from the Deputy City Manager (non- discussion items). 5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) (Any person may address the governing body in regard to any matter over which the governing body has jurisdiction, or of which it may take cognizance, that is not on the agenda.) ARRA Agenda - February 2, 2000 Page 2 6. COMMUNICATIONS FROM THE GOVERNING BODY 7. ADJOURNMENT This meeting will be simultaneously cablecast on channel 22. The next regular ARRA meeting is scheduled for Tuesday, June 29, 2000 (pending action on tonight's ARRA agenda). Notes: • Sign language interpreters will be available on request. Please contact the ARRA Secretary, Lucretia Akil at 864 -3400 at least 72 hours before the meeting to request an interpreter. • Accessible seating for persons with disabilities (including those using wheelchairs) is available. • Minutes of the meeting are available in enlarged print. • Audio tapes of the meeting are available for review at the ARRA offices upon request. APPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, November 3, 1999 1. SPECIAL SESSION The special session was convened at 5:15 p.m. with Chair Appezzato presiding to address the following item: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Attendees: Chair Appezzato, Member DeWitt, Member Kerr, Member Johnson, Alternate Member Leonhardy, Alternate Member Ornelas, Alternate Member Friedman. Chair Appezzato adjourned the special session at 5:25 and convened the regular meeting at 5:40 p.m. He announced the Board had met in special session and that direction was given to legal counsel. No action was taken. 2. ROLL CALL Present: Chair Ralph Appezzato, Mayor City of Alameda Tony Daysog, Councilmember, City of Alameda Albert DeWitt, Councilmember, City of Alameda Beverly Johnson, Councilmember, City of Alameda Barbara Kerr, Councilmember, City of Alameda Mark Friedman, alternate to Wilma Chan, Alameda County Board of Supervisors, District 3 Kathleen Ornelas, alternate to Sheila Young, Mayor, City of San Leandro Jay Leonhardy, alternate to Jerry Brown, Mayor, City of Oakland Absent: Sandre Swanson, Vice Chair, Ninth Congressional District for Barbara Lee 3. CONSENT CALENDAR 3 -A. Approval of the minutes of the regular meeting of October 6, 1999 and the special meetings of October 6, 1999. 3.B. Report recommending the appropriation of $2.4 million grant funds awarded from the Economic Development Administration (EDA). 3.C. Report recommending approval of the recommended priorities for the ARRA's 2000 grant application to the Economic Development Administration. -1- 3.D. Report recommending the amendment of the Standards of Reasonableness to reflect recent ARRA Governing Board Action related to Economic Development Allocation to the Alameda Point Collaborative. Alternate Leonhardy moved approval of the minutes as presented for the regular meeting of October 6, 1999 and the special meetings of October 6, 1999, and the Consent Calendar. The motion was seconded by Alternate Member Friedman and passed by the following voice vote: Ayes 7. Noes 0. Abstentions - 0. Member Daysog arrived after the vote. 4. ACTION ITEMS 4.A. Report recommending authorization for the Executive Director to execute a ten (10) year lease, with an option to purchase, on Building 40 with Bladium, Inc. The public hearing was opened. ARRA Facilities Manager, Ed Levine stated that Bladium is an established company with major operations at Stapleton Airport in Denver and in San Francisco. They run recreational sports facility. They are proposing to lease Hangar 40, a 105,000 square foot building to develop a sports center with roller blade hockey, indoor soccer, rock climbing, basketball, volleyball sports club and a cafe facility. They are proposing to enter into a ten year lease with two additional ten year options to extend the lease and an option to purchase the property. They will be leasing the building at market rate and the purchase option would be at fair market value, which would be no sooner than the fifth year of their lease term. Mr. Levine indicated staff has reviewed their financials which shows they are a very solid, established company. The estimated gross rental revenue from this deal over the first ten years, will be approximately $4.1 million. This deal is good for Alameda Point as it will attract other tenants and staff strongly recommends approval of it. Chair Appezzato asked Mr. Levine how long has staff been negotiating this contract? Mr. Levine stated negotiations have been going on for about one year. Chair Appezzato asked if Bladium does not succeed, are their any penalties or do they have to pay the remainder of the lease? Mr. Levine responded that they are signing up for a. full term lease and it requires payment through the term of the lease of the rent. They are expected to invest a substantial amount of their own money into the building for improvements beyond the base of shell improvements which we pay for. Member Johnson asked Mr. Levine does he know how long this company has been operating in San Francisco? 2 Mr. Levine responded that he would rather defer to Bladium to answer that. Chair Appezzato asked Deputy City Manager David Berger did he have any comments? Deputy Berger responded that the Planning Board has provided an Interim Use Permit for this facility and BRAG has reviewed it for consistency with the Reuse Plan and has concluded that it is consistent. Chair Appezzato stated that the Principal of Bladium, Pete Halberstadt is a resident and businessman in the City of Alameda. Pete Halberstadt of Bladium, indicated that he hopes the ARRA and community would enter into a partnership with Bladium, to bring what will be one of the West Coast's largest multi -sport facilities at Alameda Point. Mr. Halberstadt presented a four minute video about Bladium. He indicated Bladium will engineer a $2.5 million renovation of Building 40. $1 million of that will go towards qualifying shell improvements to meet appropriate code levels. Once the operation reaches stability, the City and County can expect to collect in excess of $500,000 a year from their operations. Mr. Halberstadt further stated they Bladium will provide a safe, healthy environment for children and adults to enjoy organized sports and instruction. Bladium will also create between 75 and 100 new jobs for people of varying agents and backgrounds. Bladium is a true transition project for Alameda Point. This deal will bring thousands of Bay Area residents to Alameda Point on a regular basis in a very controlled manageable, off -peak manner. For these reasons, Bladium represents a tremendous step forward, integrating Alameda Point into the mainstream of Bay Area life. Mr. Halberstadt stated he and his partners are ready to invest a significant amount of money, time and energy into become a very positive contributor in this community. They are asking the ARRA approval of the recommendations. Mr. Halberstadt indicated that their operations in Denver and San Francisco have never received a complaint from the community, as they invest in the community. Chair Appezzato asked how long has Bladium been in business and when did they open their first facility? Mr. Halberstadt responded April, 1995 they opened a single, rink facility in San Francisco. Chair Appezzato asked Mr. Halberstadt did they have any plans to allow for BMX bikes at their facility, in competition of the Skateboard park at Alameda Point. Mr. Halberstadt responded that they removed the skate park from their facilities to accommodate the City build project. Member Johnson asked what is their time frame for opening. Mr. Halberstadt responded they would like to be open in four to five months. -3- Diane Lichtenstein, BRAG Vice - Chair, indicated they received a presentation from Bladium two months ago and they applaud the idea, but they are concerned about the option to purchase after four years. Although Bladium fits into the Reuse Plan, Bladium itself may not be something that the City and community wants to continue after ten years. The Interim Reuse plan calls for five years and after that, a more peimanent use would be taken up at Alameda Point. Now we are into 20 years and then permanent use and this concerns the BRAG. Ms. Lichtenstein stated she and the BRAG are not making a recommendation of approval of this project, due to its timing of being put on their agenda. The BRAG has expressed their concerns about going into permanent use this early, without an overall plan of all the base. There has not been enough time planned for this project and it is not taking a good direction. MaryLynn Ochaln, 1418 Central Avenue, representative of the Adult Soccer Community indicated she was in favor of the Bladium sports complex. She indicated she has a large network of soccer player friends who travel long distances to play indoor soccer from Concord, San Ramon, Belmont and San Jose who would also definitely be in favor of this complex. Bill Garvine, Alameda Power and Telecom (AP &T), stated that when the Alameda Navy Base closed down, they lost $6 million in revenue and this Bladium complex would be a sizeable revenue opportunity for AP &T and the City. They are significant in their energy around the clock, particularly in the critical periods (weekends and late night) which is meaningful to AP &T income. This project is an ideal use to piggyback economic development business attraction and retention efforts targeted towards the advanced technology community. This facility will be a major asset in AP &T presentation kit to market advanced technology places to Alameda Point. Bladium represents the kinds of places that this working group is interested in going to after work. Mr. Garvine indicated Bladium has the full endorsement of AP &T for recommending Bladium lease to go forward. Also, it is fair for any company who is investing $2.5 million of their own money to have the right to "purchase" in their lease. Richard Neveln, 1328 Park Street, expressed it is good that Alameda is doing something wonderful for the youth of the City and the whole Bay Area. An option to purchase four years into the process, is somewhat of concern as Diane Lichtenstein mentioned. This facility will give some recognition to the people who served this country and the Naval Air Station that worked at Alameda Point. Paula McCloskey, Alameda Chamber of Cominerce, expressed it is a Chamber recommendation to support the Bladium project. Ms. McCloskey stated that Pete Halberstadt gave them a tour of the facility, in which they concluded that it is an asset to the community of Alameda as it will involve the entire family. It is also a big money revenue generator for the City and it will employee up to 75 to 100 employees. Ms. McCloskey stated she spoke to staff from Manex and they indicated that their employees would love to have a recreational facility such as Bladium located at Alameda Point. It is also a benefit to activities like the Hornet as it will attract families to visit the Hornet. The Bladium project would give the youth of the community a good healthy outlet to participate in. -4- The public hearing was closed for Authority discussion. Member Daysog asked if the $4.1 million in revenue is net present value terms or just a figure which was summed up? Deputy Berger responded that those figures are real dollars. It is also gross revenues which are explained in the staff report, not the net of the shell building improvements. Member Daysog asked what is the net present value of the actual lease? Deputy Berger responded that the net present value is $2.7 million. Member Leonhardy asked are there any estimates or inclusions regarding the revenues which will be received through Alameda Power & Telecom. Bill Garvine, AP &T, responded that they cannot give out any estimates or definite figure presently, because they are in the process of meeting with Bladium staff to assess this infoiination. Member Johnson asked would the purchase price based on fair market value, be based on the structure as it is improved? Deputy Berger responded that the value would be based upon its then fair market value. An appraisal would be done. Member Johnson asked would they be reimbursed at all? ARRA Facilities Manager Ed Levine indicated Bladium would front the money for the shell improvements which is approximately $1 million. They would be reimbursed through the initial 10 -year lease term. If they buy the property prior to the 10 -year period, they will have not received full reimbursement. The amount which they do not receive back in reimbursements, will be deducted from the fair market value. Member Johnson indicated she respects the concern the BRAG has, however this is not inconsistent with the Reuse Plan and this project cannot be done unless we give the option to purchase. Member Johnson stated she has met with students all over town who have expressed they do not have anything to do in Alameda, not even a movie theater to go to. This is not just for kids, but for families. Member Johnson stated she supports the recommendation to go forward. Chair Appezzato asked Pete Halberstadt of Bladium, if they do not have the right to purchase will they not pursue this deal? Peter Halberstadt responded that is correct. -5- Member Kerr expressed that she was delighted to have a recreational facility presented to Alameda for which the City does not have to find tax money or worry about insurance or many other things which affects recreational projects. It is good that there are people who are willing to put their own money into the facilities at Alameda Point, because this is the only way any serious money will be put into these buildings. Up to this point, we have taken reduced rent in exchange for people spending their money to improve these buildings so they can use it. By Bladium putting $2.5 million of their money in for improvements, this will be an asset for Alameda Point. Member Kerr acknowledged that she understands the BRAG concerns, however if this waterfront area property value increases, Bladium may end up with their facilities somewhere else. Member DeWitt stated that this is an excellent project, which will bring people out to the base, and the financial package looks good. The problem is the right to purchase option. It is premature to make a decision about purchase because we do not know if the Tidelands Trust area will be conveyed to the City. There is an interim reuse, and a long term reuse policy and this is the reason why this project is before the Board because of its long -term reuse. We do not want to sell land in order to pay the bills at Alameda Point. The procedure we should be using, is that we need to know what our big picture is and we should have a developer who can decide how that area should be used. The Board can vote to sell the land to a developer and let him build what we want and not just whatever comes in off the street. Twenty or fifty years down the road, we may have a lot of different people owning a lot of little parcels and the City may be forced to buy it back for millions of dollars. The method we are using for Catellus is that we chose a developer, he is going to give us money for the land and build what we want. This procedure of selling parcels to whomever comes in and wants to build something so we can pay the bills, is not the right procedure to use. Member DeWitt indicated he would like to see this project go forward and to see it on the base, however it is to early to make a wise decision as to whether or not we should be selling this land. Bladium should give us a chance to see how we are going to develop the base. If the Board votes for this project to move forward, Member DeWitt asked that the ARRA Executive Director or somebody to get our act together and get some plans for long term reuse and get a developer for Alameda Point who will develop the land, so it comes out to look like what the citizens want. Chair Appezzato stated he wished he knew what the citizens want. It does not matter what we bring here, one will like it and one will not. Member Johnson asked would there be anything to prevent a developer from purchasing the property from Bladium? Deputy City Manager David Berger responded not that he is aware of. Member Johnson asked this would still be a possibility if the market were there? Deputy Berger responded yes. -6- Member DeWitt pointed out that in the Reuse Plan, there is a park, which runs from the main gate right up to the marina. This building falls very close to the parkway to the marina. It is very close to being in a park way area. The area on the waterfront is for marine industry and commercial. There is a plan that the people of Alameda did work with. Member Daysog stated he was approached by an owner of one of the recreational facility managers in Alameda and her concern was that this facility would not only compete with the facility which she manages, but staff would be subsidizing this facility. Member Daysog asked is this going to be an exercise facility with weights and racket ball courts? Pete Halberstadt of Bladium, responded no, this would not be a direct comparison between the two facilities. There is a fitness component to what is offered, but there are very few sport facilities that do rock wall climbing that do not offer fitness equipment. It is part of Bladium's component, as their members want that. With respect to local competition, there has not been any fitness club on this island in the past eighteen to twenty years at that end of the island. Member Daysog stated the issue is not competition, but that the Governing Body might be subsidizing a competitor. Bladium is receiving almost $975,000. Mr. Halberstadt responded that they are not receiving that money, it is the City's building and Bladium is forwarding money that will be reimbursed in the form of rent rebates. Mr. Halberstadt pointed out that their neighboring building was actually given grant money. Member Johnson stated she does not view this as subsidizing because Bladium is spending $975,000 to a improve a building they do not own. If they purchase the building in the future, because of the $975,000 they are investing in the structure, the building will be worth more, so they will be paying the City more when they buy it. Alternate Member Friedman asked does this vote require a majority of the City Council for approval? Assistant Attorney Terri Highsmith responded yes it does. Member Daysog voiced that he knows that we offer below market rent to get companies onto the base. Is this deal any different than what we have been doing with any other companies? Deputy Berger responded no. With this particular building, staff solicited proposals from several companies that were interested concurrently in the building, along with their price. We were able to gauge the market specifically for the building and staff believes this is not a below market, but at the market for this type of building, which does not meet today's building code standards. ARRA Facilities Manager Ed Levine stated the rent structure for Bladium is higher than is being paid for by any other tenant in any of the other hangars, which staff has leased to date. -7- Member Daysog stated that any time we reimburse anyone for repairs and improvements to a building, that is subsidy, which is our tax dollars. Chair Appezzato stated we can sit and dream forever and look at something that may or may not happen years down the road and not take any action. Because of the revenue generation and employment, it is what we promised when we began this reuse plan, that we would generate revenue and employment. This project is consistent with the Reuse Plan and we should be flexible enough to be able to adjust, especially when there is money riding on the project. It is important to note there is local control. The last tenant given local control does not have enough space to build their marina at the base. The business support is unanimous in the community for this Bladium project based on local control. If there is a higher use down the road, it will take precedence. Member Kerr moved approval of the recommendation. The motion was seconded by Member Johnson, and passed by the following voice vote: Ayes - 7; Noes -1 (Member DeWitt); Abstentions - 0. Discussion. Member DeWitt stated he likes the project and thinks it great but the problem is the idea of the option to purchase in four years. Someday, the City will have to go and buy it back for billions of dollars. Chair Appezzato stated that if the City has to buy it back for a $1 billion dollars, it will probably be because the City has made $2 billion. There is no reason to buy back a property that is for a higher and better use. It is time to move on. 5. ORAL REPORTS 5 -A. Oral report from the BRAG. Diane Lichtenstein indicated that her report was present earlier when she spoke about Bladium. 5 -B. Oral report from the Deputy City Manager (non- discussion items). None. 6. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) Richard Neveln, 1328 Park Street, member of the Public Transit Committee, expressed to those that were watching the proceedings tonight have the opportunity to come tonight and listen to a presentation in the Council Chambers by AC Transit, who is one of the main Agenda Items on the Public Transmit Committee meeting tonight. - 8 - 7. COMMUNICATIONS FROM THE GOVERNING BODY None. 8. ADJOURNMENT The meeting was adjourned at 6:40 p.m. Respectfully, Lucretia Akil ARRA Secretary Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 26, 2000 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Mid -Year Alameda Point Budget report from the Deputy City Manager Background: At the October 6, 1999 ARRA meeting, the ARRA approved the 1999 -2000 Alameda Point budget. The budget included leases, grants, cooperative agreement funds, and bond proceeds as revenue sources. The expenditures were distributed through Alameda Point Administration, Police, Fire, Alameda Power and Telecom and Public Works. See Attachment 1, a spreadsheet outlining the Alameda Point budget for this fiscal year, as presented and passed in October. Discussion: Since the budget was approved, there have been changes to the revenue projection. In November, the ARRA received an additional capital improvement grant from the Economic Development Administration for $2,400,000 ($1,700,000 plus $700,000 match) for building and water system upgrades. Based on commercial and residential lease income, the projected annual lease revenue will be higher than the original projection, i.e. $4,832,379 to $5,194,880. This is largely due to additional leases signed at the Fleet Industrial Supply Center and lease revenue being initiated sooner than the original projection. The FISC leases are short term leases and therefore cannot be considered a constant stream of revenue. Originally, the FISC lease revenues were projected from Building 2 only and currently we are leasing Buildings 2, 3, 4, and 5. In addition, the leasing of the "big white" housing has moved more quickly than originally anticipated. Also, the business plan, which serves as the foundation for the revenue projection, did not include eight commercial tenants who are generating revenue for Alameda Point. The projection will be revised to include these tenants and updated for next fiscal year budget process. Expenditures are projected to be on target, with possible savings from operating and maintenance budgets. For example, as reported in the October staff report, Alameda Power & Telecom was working with staff to develop cost savings. Several transformers were turned off to reduce electricity costs and at midyear the expenditures are at 40 percent of its appropriation. Staff anticipates midyear budget adjustments that are within the existing appropriation. We will bring those adjustments to you at the next ARRA meeting. Fiscal Impact: Revenues are projected to be higher, therefore increasing the estimated unappropriated reserve by this amount. Expenditures are expected to be close to appropriation with possible savings, also potentially increasing the reserve. Honorable Members of the Alameda Reuse and Redevelopment Authority Recommendation: No action needed, as this report is transmitted for informational purposes. Respectfully submitted, January 26, 2000 Page 2 David A. Berger Deputy City Manager Community and Economic Development By: Nanette Banks Alameda Point, Business and Special Project Manager DB /nab/la Attachments: Alameda Point Budget Fiscal Year 1999 -2000 Alameda Point Midyear Budget Fund Balance Projection H: \STAFF- RE.PTS\MID YRBGT. WPD Attachment 1 ALAMEDA POINT BUDGET - FISCAL 1999 -00 R EVENUES Carry Over: Leases Grants: Operating Capital Tenant Match Sub Total Cooperative Agreement 3 months - July /Sep99 $ 132,601 1,200,000 1,581,857 350,000 Lease Revenues - Current Year Debt Financing Citywide $ 2,182,720 Alameda Point 3,071,473 BUDGET Operations $ 1,595,547 Administration Law Enforcement Fire Prevention Building Maintenance Roads And Grounds Electric Power 3,264,458 Water Sanitary Sewers Storm Drains Telephone /Cable $ 1,225,000 $ 4,832,379 Capital - Debt Financed Sanitary Sewers Water Electric 5,254,193 Grand Total Revenues 0 $ 16,171,577 Alaptzj8 /30/99 Capital - Grant/Others Grant Grant Tenant Match FUND BALANCE $ 4,246,866 488,358 1,198,478 935,000 642,840 1,000,000 334,000 441,285 250,000 160,000 $ 397,443 2,358,030 316,000 $ 9,696,827 $ 3,071,473 $ 1,200,000 1,581,857 350,000 $ 3,131,857 $ 15,900,157 $ 271,420 Grand Total Budget & Fund Balance $ 16,171,577 Attachment 2 Alameda Point Midyear Budget Fund Balance Projection Beginning Balance 7/1/99 - 12/1/99 (estimate) Housing Revenues $543,098 Commercial Property Revenues $1,625,406 FISC Property Revenue $428,936 SIX MONTH TOTAL $2,597,440 Lease Revenue Projection (annualized)* $5,194,880 Lease Carry Over $1,595,547 Grants Operating $132,601 Capital 1 $1,200,000 Capital 2 $1,581,857 Capital 3 $1,700,000 Tenant Match $350,000 Cooperative Agreement (3 months) $1,225,000 Cooperative Agreement Extension $391,725 Debt Financing Citywide $2,182,720 Alameda Point $3,071,473 Total Revenue $18,625,803 Approved Expenditures October 6, 1999 ARRA Meeting $15,900,159 November 3, 1999 ARRA Meeting (capital 3 grant) $1,700,000 Cooperative Agreement Extension $391,725 Total Expenditures $17,991,884 Ending Balance /Reserve (estimate) $633,919 *BOLD denotes new information Page 1 Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 26, 2000 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Report and recommendation from the Deputy City Manager to amend sections 2.02 and 2.03 of the ARRA By -laws to establish the Mayor and Vice -Mayor as Chairperson and Vice - Chairperson of the ARRA Governing Body respectively Background In July 1994, the ARRA approved By -laws which established officers for the Governing Body. The ARRA would have a Chairperson to preside over the meetings and Vice - Chairperson to serve in the absence of the Chairperson. Discussion It is anticipated that the County Board of Supervisors, City Council, and Community Improvement Commission (CIC) will pass an amendment to the Joint Powers Authority which will enable restructuring the membership of the current ARRA Governing Body. Upon approval of the JPA amendment, the ARRA will consist solely of the members of the City Council/ CIC. The current Vice Chairperson of the ARRA is one of the regional members, who will no longer serve on the ARRA. Accordingly, action needs to be taken by the ARRA to appoint a new Vice- Chairperson. Consistent with the manner in which other political bodies within the City chair their proceedings, staff is recommending that the ARRA By -Laws be amended to appoint the Mayor and Vice -Mayor of the City as the Chairperson and Vice - Chairperson, respectively, of the ARRA. Fiscal Impact None Recommendation It is recommended that the ARRA Governing Body amend sections 2.02 and 2.03 of the ARRA By- laws to establish the Mayor and Vice -Mayor as Chairperson and Vice- Chairperson of the ARRA Governing Body respectively. Respectfully submitted, David A. Berger Deputy City Manager Community and Economic Development By: Nanette Banks Alameda Point, Business and Special Project Manager DAB/NB /la Attachments: Amended Bylaws of the Alameda Reuse and Redevelopment Authority BYLAWS OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1.01. Name of Authority. The official name of the Authority shall be the "Alameda Reuse and Redevelopment Authority." Section 1.02. Powers. The powers of the Authority shall be vested in the members thereof then in office (the "Governing Boyd "), who reserve unto themselves the right to delegate by resolution such powers as are appropriate pursuant to the "Alameda Reuse and Redevelopment Authority Joint Exercise of Powers Agreement ", dated April 5, 1994 (the "Joint Powers Agreement "), and as permissible by law. Section 1.03. Members. The members of the Governing Body shall be as set forth in subsection (A) of Section VI of the Joint Powers Agreement. Section 1.04. Fiscal Year. The fiscal year shall be from to ARTICLE II - OFFICERS Section 2.01. Officers. The officers of the Authority shall be the Chairperson and Vice - Chairperson of the Governing Body. Other Authority officials acting by contract as staff to the Governing Body shall be an Executive Director, a Secretary, a Fiancnace Director and a General Counsel. Section 2.02.Chairperson. The Chairperson of the Governing Body shall be the Mayor of the City of Alameda. The Chairperson shall preside at all meetings of the Governing Body. Except as otherwise authorized by resolution of the Governing Body or the provisions of these Bylaws, the Chairperson shall sign all contracts, deeds and other instruments made by the Authority. At each meeting, the Chairperson shall submit recommendations and information as the Chairperson may consider proper concerning the business, affairs and policies of the Authority. Section 2.03 Vice - Chairperson. The Vice- Chairperson of the Governing Body shall be the Vice -Mayor of the City of Alameda. The Vice - Chairperson shall perform the duties of the Chairperson in the absence or incapacity of the Chairperson. 1 Section 2.04. Executive Director. The Authority shall contract with the City Manager of the City of Alameda or the City Manager's designee to serve as the Executive Director of the Authority. The Executive Director shall have general supervision over the administration of Authority business, affairs, and employees pursuant to the Joint Powers Agreement and in accordance with all applicable laws. The Executive Director shall have such powers and authority as set forth by resolution duly adopted by the Governing Body. Section 2.05. Secretary. The Secretary shall be appointed by the Executive Director and shall serve at the pleasure of the Executive Director. The Secretary shall keep the records of the Authority, act as secretary at meetings of the Governing Body, record all votes and keep a record of the proceedings to be kept for such purpose, and perform all duties incident to the Secretary's office. Section 2.06. Finance Director. The Authority shall contract with the Finance Director of the City of Alameda or the Finance Director's designee, to serve as the Finance Director of the Authority. The Finance Director shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank of banks as the Governing Body may select. The Finance Director shall sign all orders and checks for the payment of money and shall pay out and disburse such monies under the direction of the Governing Body. The Finance Director shall keep regular books of account, showing receipts and expenditures, and shall render to the Governing Body. The Finance Director shall keep regular books of account, showing receipts and expenditures, and shall render to the Governing Body at each regular meeting, or more often when requested, an account of transactions and the financial conditions of the Authority. Section 2.07. General Counsel. The Authority shall contract with the City Attorney of the City of Alameda or the City Attorney's designee to serve as the General Counsel of the Authority. The General Counsel shall be the chief legal officer of the Authority and shall be responsible for the preparation of all proposed resolutions, laws, rules, contracts, bonds and other legal papers for the Authority and shall endorse approval as to form. The General Counsel shall give advice or opinions in writing to the Governing Body whenever requested to do so. The General Counsel shall attend to all suits and other matters to which the Authority is a part or in which the Authority may be legally interested and do such other things pertaining to the General Counsel's office as the Governing Body may request. Section 2.08. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Governing Body or the Bylaws rules and regulations of the Authority. Section 2.09. Absences and Vacancies. In the temporary absence of the Chairperson and Vice - Chairperson, the Governing Body shall elect a member present as temporary Chairperson for the purpose of conducting meetings and performing the duties of the Chairperson. Should the offices of the Chairperson or Vice - Chairperson become vacant, the Governing Body shall elect successor from its membership at the next regular meeting, and such election shall be for the unexpired terni of said office. 2 ARTICLE III - MEETINGS Section 3.01. Regular Meetings. The Secretary shall be appointed by the Executive Director and shall serve at the pleasure of the Executive Director. The Secretary shall keep the records of the Governing Body shall be held at the time, frequency, and place specified by resolution duly adopted by the Governing Body. Section 3.02. Special Meetings. Special meetings of the Governing Body shall be called and held in a manner specified by resolutions duly adopted by the Governing Body. Section 3.03. Brown Act. All meetings of the Governing Body shall comply with the applicable sections of the Ralph M Brown Act (Government Code Section 57950, et seq.), as amended. Section 3.04. Order of Business. The order of business of the Authority shall be taken up for consideration and disposition in the order established by duly adopted resolution of the Authority. All resolutions shall be in writing and designated by number, reference to which shall be inscribed in the minutes and an approved copy of each resolution filed in the official book of resolutions of the Authority. Section 3.05. Manner of Voting. The Governing Body shall vote by roll call, and ayes, noes and members present not voting shall be entered upon the minutes of such meeting. Section 3.06. Rules of Order . The Governing Body shall adopt rules of order governing the proceedings and order of business of the Governing Body by resolution. All other matters not covered by these rules shall be decided by a majority of the Governing Body. Robert's Rules of Order Revised may be used as a guide. ARTICLE IV - AMENDMENTS Section 4.01. Amendments to Bylaws. The Bylaws of the Authority may be amended by the Governing Body at any regular or special meeting as provided for in the Joint Powers Agreement provided that no such amendment shall be adopted at lease seven (7) days' written notice thereof has been previously given to all members of the Governing Body. Such notice shall identify the section or sections of the Bylaws proposed to be amended and the proposed amendment. 3 CERTIFICATE OF SECRETARY The undersigned hereby certifies that: 1. The undersigned is the duly elected and acting Secretary of the Alameda Reuse and Redevelopment Authority. 2. The foregoing Bylaws, consisting of 3 pages, constitute the Bylaws of said Authority as duly adopted and in full force and effect on the date hereof. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said Authority this 2nd day of February , 2000. AYES: NOES: None. ABSENT: Chair Appezzato. ABSTENTIONS: None. Boardmembers Daysog, DeWitt, Johnson and Kerr - 4. C:MWARD\MENSELY\ARRA\BYLAWS.WPD 4 Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 26, 2000 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manag SUBJ: Report and recommendation from the Deputy City Manager to amend ARRA Resolution 010 to establish a regular annual meeting of the ARRA Governing Body for the third Tuesday in June and allow for special meetings as- needed. Background: In May 1994, the ARRA Governing Body established its meeting date and time as the second Wednesday of the month at 5:00 p.m. with Resolution 001 -A. In August 1995, Resolution 001 -A was amended by Resolution 010 that set the ARRA meetings for the first Wednesday of each month at 5:30 p.m. Discussion It is anticipated that the County Board of Supervisors will pass an amendment to the Joint Powers Authority which will enable reconstituting the membership of the current ARRA Governing Body. Upon approval of the JPA amendment by the County Board of Supervisors, City Council, and Community Improvement Commission (CIC) (scheduled for February 1, 2000), the ARRA will consist solely of the members of the City Council/ CIC. Since Council regularly meets on first and third Tuesdays of the month, it is recommended that ARRA meetings be held in conjunction with Council meetings on an as- needed basis. This meeting date change is in the interest of administrative efficiency and convenience to citizens. Similar to both the CIC and Housing Authority Board of Commissioners, an annual meeting also is being recommended. The regular ARRA meeting will be scheduled for the third Tuesday in June in order to allow an opportunity to pass/ revise the budget each fiscal year. Alternatively, the ARRA could continue to meet on Wednesday evenings. This will mean consecutive meeting nights for the City Council /CIC and for citizens interested in issues facing Alameda. Fiscal Impact ARRA Board Members will continue to receive an honorarium should they choose individually. Because there will be fewer members, there will be a projected savings of $2400 annually. Recommendation It is recommended that the ARRA Governing Body amend ARRA Resolution 010 to establish a regular annual meeting of the ARRA Governing Body for the third Tuesday in June and allow for special meetings as- needed. Honorable Members of the Alameda Reuse and Redevelopment Authority By: DB/NAB /la January 26, 2000 Page 2 Respectfully submitted, David A. Berger Deputy City Manager Community and Economic Development Nanette Banks Administrative Management Analyst Attachments: Alameda Reuse and Redevelopment Authority Resolution No. 10 Alameda Reuse and Redevelopment Authority Rules and Procedures C: \M W ARD\M ENSLEY \A RRA \STAFFREP\2000\MEETDAT. W PD ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY RESOLUTION NO. AMENDING RESOLUTION NO. 010 ESTABLISHING RULES AND PROCEDURES FOR ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY MEETINGS BY AMENDING THE MEETING DATE AND TIME WHEREAS, on May 19, 1994, the Alameda Reuse and Redevelopment Authority ( "ARRA ") adopted Resolution No. 001 establishing the Rules and Procedures for the Alameda Reuse and Redevelopment Authority meetings; and WHEREAS, Resolution No. 001 was subsequently amended by Resolution No. 001 -A (regarding specified meeting times), and by Resolution No. 010 (regarding the order of business and character of minutes kept); and WHEREAS, on February 1, 2000, both the Alameda County Board of Supervisors and the City Council of the City of Alameda approved an amendment to the Joint Powers Agreement to delete the membership of the County in the ARRA and add the Community Improvement Commission to the ARRA membership, which action was also ratified by the Community Improvement Commission; and WHEREAS, it is now necessary to amend Section 1 of the Rules and Procedures for the Alameda Reuse and Redevelopment Authority by amending the regular meeting date and time, to read as follows: "Section 1. Meetings. The regular meeting of the Alameda Reuse and Redevelopment Authority shall be held once, annually in the City Council Chamber of the Alameda City Hall on the third Tuesday of June at 7:00. All meetings shall be open and public, except as otherwise provided by law. If it reasonably appears to the Secretary of the Alameda Reuse and Redevelopment Authority that (a) the Council Chamber is not large enough to accommodate the number of persons likely to attend any meeting, or (b) special facilities other than the Chamber are required for a particular meeting, or (c) a meeting will constitute a joint session with another agency to be held at the latter's usual meeting place, or, (d) advantages exist in having an on -site meeting, the Secretary may, with consent of the Chairperson, give appropriate written or oral notice at the commencement thereof that such meeting will be called to order in the Council chamber and thereupon continued to the time and place required by reason of the special circumstances hereinabove mentioned." NOW, THEREFORE, BE IT RESOLVED by the Alameda Reuse and Redevelopment Authority that said Authority hereby amends Resolution No. 010 by amending Section 1, Meetings, as attached hereto as Exhibit A. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Alameda Reuse and Redevelopment Authority in its regular meeting, assembled on the 2nd day of February, 2000, by the following vote, to wit: AYES: NOES: ABSENT: ABSTENTIONS: Lucretia Akil Secretary Alameda Reuse and Redevelopment Authority Date: February , 2000 C: \M WARD \MENSLEY\ARRA \RESOLUTN \MEET.TIM EXHIBIT A ALAMEDA REUSE AND REDEVLEOPMENT AUTHORITY RULES AND PROCEDURES Section 1. Meetings. The regular meeting of the Alameda Reuse and Redevelopment Authority shall be held once, annually in the City Council Chamber of the Alameda City Hall on the third Tuesday of June at 7:00. All meetings shall be open and public, except as otherwise provided by law. If it reasonably appears to the Secretary of the Alameda Reuse and Redevelopment Authority that (a) the Council Chamber is not large enough to accommodate the number of persons likely to attend any meeting, or (b) special facilities other than the Chamber are required for a particular meeting, or © a meeting will constitute a joint session with another agency to be held at the latter's usual meeting place, or, (d) advantages exist in having an on -site meeting, the Secretary may, with consent of the Chairperson, give appropriate written or oral notice at the commencement thereof that such meeting will be called to order in the Council chamber and thereupon continued to the time and place required by reason of the special circumstances hereinabove mentioned. NOW, THEREFORE, BE IT RESOLVED by the Alameda Reuse and Redevelopment Authority that said Authority hereby amends Resolution No. 010 by amending Section 1, Section 2. Agendas. a. At last seventy -two (72) hours before a regular meeting, the Secretary shall post an agenda containing a brief general description of each item of business thereon and specifying the time and location of the meeting. b. No action shall be taken on items not appearing on the posted agenda unless permitted by general law. Section 3. Special Meeting. A special meeting may be called by the Chairperson or majority of the members of the Governing Body by serving all members as required by general law within at least twenty -four (24) hours prior to the meeting, except for emergency meetings, with written notice of the time and place thereof and the business to be transacted. No other business may be considered at such meeting. The Secretary shall poll the members of the Governing Body and attempt to arrange a date and time convenient to all members. Section 4. Adjournment of Meetings. The Governing Body may adjourn any regular, adjourned regular, special or adjourned special meeting to a time and place specified in the order of adjournment. Less than a quorum may so adjourn from time to time. If all members of the Governing Body are absent from a meeting the Secretary may declare the meeting adjourned to a stated time and shall cause written notice of the adjournment to be given in the same manner as provided in Section 3 for special meetings, unless such notice is waived. A copy off the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held within twenty - four (24) hours after the time of adjournment. When an order of adjournment of any meeting fails to state the hour at which the adjournment meeting is to be held, it shall be held at the hour first provided in Section 1 for regular meetings. If the adjourned meeting is adjourned for more than five (5) calendar days, those items so adjourned shall be reported. Section 5. Submission of Matters Before 5:00 p.m. on the Monday of the week prior to each meeting of the Governing Body any official, board, commission or other municipal body having any reports, communications or other matters for submission to the Governing Body, shall hand the same to the Secretary whereupon the Secretary shall arrange a list of such matters according to the order of business specified in Section 6. Section 6. Order of Business. Promptly at the hour appointed for each regular meeting, the members of the Governing Body shall assemble in City Hall in the designated Council Chamber location. Thereupon, business shall be taken up for consideration and disposition in the following order: 1. Roll Call 2. Consent Calendar 3. Action Items 4. Oral Reports 5. Oral Communications, Non - Agenda (Public Comment) 6. Communication from Governing Body 7. Adjournment The order of business may be suspended at any Governing Body meeting by a majority vote of the members in attendance. It is the general policy of the Alameda Reuse and Redevelopment Authority to prepare action minutes of the deliberations of the Governing Body. Minutes must be finalized and adopted by the majority of Governing Body members in order to be regarded as an official record of the Alameda Reuse and Redevelopment Authority. 2 A true copy of the minutes of proceedings of regular and special meeting not theretofore approved, as the same shall be entered in the journal of proceedings, shall be provided by the Secretary to each member of the Governing Body at least twenty -four (24) hours before regular meetings. Unless otherwise ordered by the Governing Body, the minutes of meetings may be approved without a reading of same. Any member of the public may request that corrections or deletions be made to the minutes. These requests may be acted upon by the Alameda Reuse and Redevelopment Authority with appropriate review and deliberations. Section 7. Rules of Order. The following definitions and rules shall govern the proceedings and order of business of the Governing Body: a. Items listed under the "consent calendar: are considered routine and will be enacted, approved, or adopted by one (1) motion, unless a request for removal for discussion or explanation is received from the Governing Body. b. Hearings shall consist of matters wherein notice and public hearings are required by law and such matters as the Governing Body may deem necessary or desirable to schedule for public hearing. No member of the Governing Body shall discuss or listen to discussion of the facts of any matter which by law requires evidence to be taken at a public hearing by the Alameda Reuse and Redevelopment Authority while such matter is pending before the Alameda Reuse and Redevelopment Authority or any agency thereof, except in open meeting of the Governing Body, nor shall the facts of any such matter which may probably be the subject of public hearing by the Governing Body be discussed outside of any Alameda Reuse and Redevelopment Authority meeting by any member thereof. c. Under the item of business entitled "oral communications, nonagenda items," any person may address the Alameda Reuse and Redevelopment Authority in regard to any matter over which the Governing Body has jurisdiction or of which it may take cognizance, that it is not on the agenda. d. Appeals shall be presented to the Governing Body as required by law. Persons other than parties to the appeal may speak only by permission of the Governing Body. No member of the Governing Body shall discuss the evidence applicable to an appeal with Non - Governing Body members while such matter is pending except in open meeting of the Governing Body. e. Prior to public discussion or Governing Body deliberation, the presiding officer of other person designated thereby shall describe the item of business before the Governing Body. f. Public Discussion. 1. Permission. Any person addressing the Governing Body shall first secure the permission of the presiding officer. 2. Not a Debate. Public discussion should not be used to elicit a debate between the Governing Body and the public. Speakers should not be unless they are out of order. 3 3. Time Limits. Except for public hearings and other specified situations, no one, including members of the Governing Body shall speak for more than three (3) minutes. The Chairperson, as Presiding Officer, may grant additional time upon determination that the information is of interest. Spokespersons may speak for up to fifteen (15) minutes at the discretion of the Chairperson, as Presiding Officer. At public hearings, the Governing Body may establish similar or longer time limits prior to commencement of the hearing as well as establish an overall time period for the hearing. 4. Pending Motion. When a motion is pending before the Governing Body, no person other than a member shall address the Governing Body without first securing the permission of the Chairperson to do so. 5. Public discussion shall precede Governing Body deliberation unless a motion to deliberate first is adopted; (public discussion may follow Governing Body deliberation). 6. No discussion shall be permitted without approval of the Governing Body after a motion which would terminate further deliberation has been adopted. Such permission shall be given where both a public hearing is required by law and the speaker states that he /she has evidence to give which has not yet been put into the record. Governing Body Deliberation. 1. Presiding Officer May Deliberate. The presiding officer may deliberate from the chair, subject only to such limitations of deliberation as are by these rules imposed on all members, and shall not be deprived of any of the rights and privileges as a member of the Governing Body by his/her acting as the presiding officer. 2. Conflict of Interest. In situations where there is a conflict of interest, members of the Governing Body are required to abstain from voting on the item and participating in the decision - making process. The following Procedures should be followed: (i) Declare the conflict of interest. (ii) State the basis of the conflict of interest. (iii) Do not discuss or vote on the matter. (iv) Step down from the podium until the item is completed. 3. Getting the Floor; Improper References to be Avoided. Every member desiring to speak shall address the Chairperson, and upon recognition by the presiding officer, shall confine himself/herself to the question under deliberation. 4. Interruptions. A member, once recognized, shall not be interrupted when speaking unless it be to call the member to order, or as herein otherwise provided: ' If a member, while speaking, be called to order, the members shall cease speaking, be called to order, the order be determined, and if in order, said members shall be permitted to proceed. 5. Remarks of Governing Body member; When Entered in Minutes. Any Governing Body member may request, through the presiding officer, the privilege of having a written abstract of the member's statement on any subject under consideration by the Governing Body entered in the minutes. If the Governing Body consents thereto, such statement shall be entered in . the minutes. 6. Motion to Reconsider. A motion to reconsider any action taken by the Governing Body may be made only on the date such action was taken. It may be made either immediately during the same session, or at a recessed or adjourned session thereof. Such motion must be made by one (1) of the prevailing side, and may be made at any time and have precedence over all other motions or while a member has the floor; it shall be debatable. Nothing herein shall be construed to prevent any member of the Governing Body from making or remaking the same or other motion at a subsequent meeting of the Governing Body or a motion to rescind. 7. Repeal or Amendment of Action Requiring More than a Majority Vote. Any resolution which is passed and which, as part of its terms, requires more than a majority vote of the Governing Body in order to pass a motion pursuant to such an resolution, shall require a vote of the same percent of the Governing Body to repeal or amend the resolution. 8. Motion to Table. A motion to lay on the table shall preclude all amendments on deliberation of the subject under consideration. If the motion shall prevail, the consideration of the subject may be resumed only upon a motion of a member voting with the majority. 9. Motion to Call for Question or Continue to a Date Specific. A motion to call for the question or continue the matter to a specific date shall preclude all amendments to or deliberation of the subject under consideration and is not debatable. 10. Statement of Position. When a motion to call for question or table is adopted, each member of the Governing Body may briefly state his /her position on the matter before roll call or call for the next item of business. 11. Privilege of Closing Deliberation. The Governing Body member moving the adoption of an resolution shall have the privilege of closing the deliberations or making the final statement. 12. Division of Question. If the question contains two (2) or more divisionable propositions, the presiding officer may, and upon request of a member shall, divide the same. 13. Second Required. All motions except for nominations and a point of order shall require a second. 14. Forms of Action. The Alameda Reuse and Redevelopment Authority may act by motion or resolution. All motions shall be recorded in the minutes verbatim. All resolutions shall be in writing and the title shall be recorded verbatim in the minutes as well as the vote thereon. 15. Miscellaneous. All other matters not covered by these results shall be decided by a majority of the Governing Body. Robert's Rules of Order may be used as a guide. 16. , Voting Procedure. When a majority vote cannot be reached on matters where more than two (2) candidates or propositions are at issue, the issue shall be decided by successive votes wherein the candidate or proposition receiving the least number of votes on each vote shall be eliminated for the next vote until a majority vote is reached. Preferential voting or point system voting shall not be used. h. Meetings will be adjourned at 11:00 p.m. unless the Governing Body adopts a motion to continue. Section 8. Conflict of Interest. The Alameda Reuse and redevelopment Authority shall abide by the terms of the Political Reform Act of 1974 (California Government Code Section 81000 et seq.). Members of the Governing Body and staff shall not participate in any decision in which they have a conflict of interest. Section 9. Other Rules. The Alameda Reuse and Redevelopment Authority may adopt such other rules or by -laws for the conduct and control of its procedures as are not inconsistent with its Joint Powers Authority Agreement or By -Laws. Section 10. These Rules and Procedures and Amendments thereof shall be effective on the date of the adoption hereof and shall govern the conduct of the Governing Body. Section 11. A copy of these Rules and Procedures and Amendments thereto shall be filed in the offices of the Secretary of the Alameda Reuse and Redevelopment Authority. C: \M WARD \MENSLEY\ARRA \RULES.PRO 6 Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 26, 2000 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority /' FROM: David A. Berger, Deputy City Manage 3 -C SUBJ: Report and recommendation from the Deputy City Manager to Authorize the Executive Director to Execute a Ten Year Lease with Two Consecutive Five Year Renewal Options on Hangar 23 with West Coast Novelty Corporation Background West Coast Novelty Corporation is a sixty year old company based in Emeryville which markets and distributes professional sports team clothing and merchandise. They currently employ about 70 people in Emeryville and have a solid record of growth and financial success. West Coast wishes to relocate their headquarters (including sales, warehouse and distribution operations) to the 65,000 square foot Hangar 23 at Alameda Point. Since the proposed lease term exceeds seven (7) years, the lease must be approved by the ARRA Governing Board. Discussion West Coast's top priority in selecting a new location is to obtain long -term control of the facility through purchase or lease. In initial negotiations with ARRA staff, they requested a purchase option. Because their capital investment in this building will be small by comparison with AVTS and Bladium, staff rejected West Coast's purchase option request and instead offered a ten (10) year lease, with two consecutive five (5) year renewal options and first right of refusal to purchase and/or extend the lease. Hangar 23 is the only one of four 65,000 square foot hangars at Alameda Point still available for lease. Adjacent Hangars 20, 21 and 22 have been leased to Calstart, Quality Assured Products (now Kitz of California) and AVTS respectively. All four hangars were designated for retention as long -term reuse as historic resources in the Community Reuse Plan. The approved Alameda Point Financing Plan also calls for long -term adaptive reuse of these buildings. In June 1999, the ARRA Governing Board affirmed this position by granting AVTS a purchase option and long -tern lease on adjacent Building 22. Honorable Members of the Alameda Reuse and Redevelopment Authority January 26, 2000 Page 2 Fiscal Impact The gross rental revenue to be generated over the initial ten year term of the proposed lease with West Coast Novelty is $2,612,000. The lease provides for reimbursement of a maximum of $125,000 to West Coast to cover minor shell upgrades and tenant improvements on the offices. The bulk of the shell improvements to this building have already been completed in a project funded by the EDA grant. The $125,000 reimbursement to West Coast will be amortized over seven years at 9% interest and paid as credit against their rent. The net income from this lease over a ten year period (after deducting rent credits) will be $2,443,000. Recommendation It is recommended that the ARRA Board authorize the Executive Director to execute a ten (10) year lease with two consecutive five (5) year renewal options on Hangar 23 with West Coast Novelty Corporation. Respectfully submitted, David A. Berger Deputy ty Manager Co nnu pit and Economic Development By: Ed Levine Facilities Manager DAB /EL /la Alameda Reuse and Redevelopment Authority Interoffice Memorandum January 26, 2000 TO: Honorable Members of the Alameda Reuse and Redevelopment Authority FROM: David A. Berger, Deputy City Manager SUBJ: Report and recommendation from the Deputy City Manager regarding BRAG recommendation to suspend purchase options on leased properties until adoption of the General Plan Amendment Background During the last six months, the ARRA Governing Board has approved long -tern leases including purchase options with AVTS (Hangar 22) and Bladium (Hangar 40). These options were offered because the tenants were making substantial non- reimbursable improvements to the buildings and their lender /investors required such to secure their financial commitments. Both uses were consistent with the Community Reuse Plan, and both buildings are slated for long -term commercial adaptive reuse in the Reuse Plan and Alameda Point Financing Plan. In response to their concerns regarding the long -term implications of the purchase options, the BRAG has prepared the attached recommendation urging the ARRA Board to not approve fiiture,purchase options until adoption of the Amendment to Alameda's General Plan. The BRAG also suggests that the term of leases expire "simultaneously as the use permits applicable to such leases." Discussion The BRAG is concerned that the approval of purchase options may "allow certain interim uses to become permanent, which may not be consistent with the letter, intent and vision of the Community for development of Alameda Point." Staff believes that BRAG's proposal will preclude successful future negotiation of certain desirable leases. (It is doubtful that leases with either AVTS and Bladium would have been signed if they did not receive a purchase option). Staff believes that BRAG's proposal is unnecessary if specific criteria are adopted in identifying properties eligible for purchase options. There are two essential criteria which must be satisfied as prerequisites to staff consideration of a purchase option. First, the property must be designated for long -term adaptive reuse in the Reuse Plan and/or the Financing Plan. And second, the prospective tenant must be committed to a substantial investment for non - reimbursable upgrades to the property. Staff believes that by strict adherence to these criteria, purchase options may be considered on a case by case basis without compromising the City's options for long -term redevelopment at Alameda Point. Honorable Members of the Alameda Reuse and Redevelopment Authority Page 2 Finally, staff believes that the City's land use decisions (use permits, in this instance) should be made separate from its economic development obligations related to accepting title to Alameda Point from the federal government, as the City always retains the right to land use decisions. Commercial buildings are sold in Alameda on a regular basis, with the buyer accepting the normal business risk connected to the City's control over future acceptable regulation of the land use (and use for that real property). Thus, staff feels it is not in the City's overall best interest to link these separate functions the City performs in connection with the reuse and redevelopment of Alameda Point. Fiscal Impact The fiscal impact of the BRAG recommendation is unknown. However, because financially attractive leases may be lost due to prohibition on purchase options, the fiscal impact could be substantial. If the ARRA Board rejects the BRAG recommendation, future purchase options will be considered on their merits (consistent with the above the above criteria) and there will be no fiscal impact. BRAG Recommendation BRAG recommends that the ARRA board not approve further interim leases which contain purchase options, prior to adoption of an amendment to the General Plan that covers Alameda Point. Staff Recommendation Staff recommends that the ARRA Board continue to consider purchase options on buildings in the Civic Core area designated for long -term adaptive (commercial) reuse subject to the criteria mentioned above or dictate specific limits on the term of subleases. As in the past, all subleases incorporating a term of seven or more years and/or a purchase option will be presented for review and approval by the ARRA Board. Respectfully submitted, David A. Berger Deputy C't. Manager Co rru city nd Economic Development By: Ed evin Facilities Manager DAB /EL /la Honorable Members of the Alameda Reuse and Redevelopment Authority Page 3 Attachment: BRAG Recommendation cc: Chairman and members, Base Reuse Advisory Group Chairman and members, Planning Board Planning Director City of Alameda California Base Reuse Advisory Group The BRAG strenuously urges against approval of interim leases at Alameda Point which contain options to purchase the property prior to adoption of the Amendment to Alameda's General Plan. The BRAG is extremely concerned that such premature options may allow certain interim uses to ,become permanent which may not be consistent with the letter, intent and the vision of the Community for development of Alameda Point. The BRAG is further informed that use permits issued to interim lessees are for a finite period of ten (10) years which is reflective of an interim leasing strategy and will give the City the necessary flexibility to allow ultimate development in conformity with the Community Reuse Plan. It would seem to make better planning sense, as well as to conform to the Reuse Plan, to write interim leases which expire simultaneously as the use permits applicable to such leases. However, in no event should options to purchase be granted prior to the adoption of the General Plan Amendment incorporating the Community Reuse Plan into the City's General Plan. Correspondence / Miscellaneous ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Interim Leasing Status Report - January 2000 Signed Leases & Licenses Term Building # Building Sq. Ft. 1 ACET (Environmental Tech. Incubator) long term 7 15,550 2 AC Hornet Foundation long term Pier 3 3 Advanced Turbine Techonology long term 398 32,000 4 Alameda Point Storage (Mini Storage) long term Near Bldg.530 5 Alameda Point Collaborative long term 92 89,000 6 Alameda Point Collaborative long term 101 68,650 7 Alameda Unified School District long term 258 12,430 8 Altamont Tech. (Tech. Testing) long term 25 18,000 9 Audio Video Technical Services long term 22 66,000 10 Antiques by the Bay (Collectibles Faire) long term tarmac & 405 4,880 11 Bay Ship & Yacht (Ship Repair) long term Bldg 2 FISC 2,700 12 Big Whites (Housing Units) long term Various 13 Bladium (Indoor Games) long term 40 104,000 14 Bobac (Warehouse) long term Bldg 2 FISC 15 Bureau of Electricity (Storage Yard) long term at FISC 16 CALSTART (Electric Vehicle Incubator) long term 20 66,600 17 CALSTART (Test Track) 6 months 18 Cellular One (Cell Site) long term - 1,400 19 City Garage Carstar (Vehicle Incubator) long term 24 26,927 20 City of Alameda (Dog Run Park) long term 21 City of Alameda (Ferry Terminal Parking) long term 22 City of Alameda (Gym & Pool) long term 76 &134 58,450 23 City of Alameda (O'Club) long term 60 29,550 24 City of Alameda (Public Works) long term 397 17,000 25 City of Alameda (Soccer Field) long term 26 City of Alameda (Tennis Courts) long term 27 Container Storage (Cans) long term 42,000 28 CyberTran international (Test Track) short term 29 Delphi Productions (Exhibit Displays) long term 39 110,000 30 Delphi Productions (Exhibit Displays) long term 117 32,000 31 Dignity Housing (Homeless Coll.) long term 809,etc. 4,400 32 Door Christian Fellowship Church long term 564 8,600 33 Dunavant of California (Storage) long term BIdg.2 FISC 170,000 34 Emerg. Svcs. Network (Homeless) long term 613 4,600 35 Forem Metal Manufacturing long term 114 20,000 36 Forty Plus (Career Counseling) long term 90 4,500 37 Fribel Internat'l. (Concrete Statuary) long term 98 8,507 38 General Svcs. Admin. (Gov't.) long term 169 86,300 39 Home Auto Repair long term 459 11,500 40 IWA Engineers (steel Fabrication) long term 47,177 41 JBI, Inc. long term 170 No. 40,000 42 Jim Bustos Plumbing long term 113 13,115 43 Manez Entertainment long term 612 4,000 44 Manez Entertainment long term 13 34,540 45 Maritime Administration long term Piers 1,2,3, 46 Maritime Administration long term 168 117,419 47 Marine Sanitation long term 611 1,000 48 Navigator Systems (Fumiture Mfg.) long term 14 31,400 49 Nelson's Marine (Boat Storage) long term 167 & piers 55,450 50 Nelson's Marine (Boat Svcs.) long term 66 28,542 51 Operation Dignity (Homeless) long term 816,etc. 52 Orton Development long term portion of 5 110,000 53 Pacific Fine Food, Inc. (Food Preparation) long term 42 3,000 54 Piedmont Soccer Fdn. 1 year soccer field 55 Port Distribution Warehouse long term 117 22,000 56 Port Distribution Warehouse long term 118 30,000 57 Puglia Engr. (Ship Repair) long term 67 14,000 58 Quality Assured Products (valve Mfg..) long term 21 66,000 59 Richard Miller Photography long term 621 5,770 60 San Leandro Women's Shelter (Homeless) long term 531,etc. 28,080 61 Simmba Systems (Records Storage) long term 9 92,817 62 Tower Aviation long term 530 82,250 63 Trident 3M Services (Port Mgmt.) long term 15 16,603 64 Trident Management 1 year Fisc Wharf N/A 65 United. Indian Nations (Homeless Coll.) long term CPO units 2,400 66 Water, Caldwell Assoc. (Consultant) long term 115 2,200 67 West Coast Seawards (Ship Repair) long term 43 10,500 68 Woodmasters (Cabinety) long term 44 5,100 69 Xebra Motors (Electric Vehicles) • 1 year 25 18,000 NO. OF PROPERTIES CURRENTLY OCCUPIED 69 OCCUPIED BUILDING SQUARE FOOTAGE 1,996,90T SignLeas.xls Alameda Reuse and Redevelopment Authority Memorandum TO: FROM: DATE: SUBJECT: ARRA Regional Board Members Lucretia Akil ARRA Secretary January 27, 2000 ARRA Meeting for February 2nd On Tuesday, February 1, 2000, the County Board of Supervisors is expected to take action to amend the ARRA Joint Powers Authority. As a result, you will no longer be required to attend meetings of the ARRA Governing Body. However, if the county doesn't act, you will still need to attend the February 2nd meeting. Please keep the Wednesday night time slot open in case the county doesn't approve the amendment. I will call you by the afternoon of February 1st if your presence at the ARRA meeting. Thank you for your cooperation. Recycled paper Board of Directors Alameda Reuse and Redevelopment Authority Alameda Point Redevelopment Center 950 W. Mall Square, Suite 100 Alameda, CA 94501 Dear A.R.R.A. Board Member, 2/1/100 After four weeks of intense negotiation and review of the facility, West Coat Novelty Corp. is pleased to indicate its strong interest in entering into a long term lease agreement for the Bldg. 23 property at Alameda Point. I am hoping that you will indulge me for few minutes while I introduce West Coast Novelty Corp. to you and outline a few of the benefits that Alameda would gain by working with WCN. First, one must understand the nature of West Coast Novelty Corp. Our name does not directly indicate the fact that we are America's largest Licensed Sports Product Distributor. WCN supplies retail stores across the country, from Wal Mart to the local sporting goods store, with a myriad of licensed sports headwear, apparel, and novelties. From authentic caps and jerseys worn by the A's and Raiders on the field of play to New York Yankee Xmas Ornaments, WCN warehouses every team in every sport and has a salesman or saleswoman in virtually every market across the nation to sell them. WCN is officially licensed by Major League Baseball, The National Basketball Association, and the National Football League, not to mention the University of California, Berkeley and the World Wrestling Federation. In addition to sports, WCN has broadened its horizons to encompass many other aspects of licensed apparel and novelties. WCN distributes everything from Harley Davidson Headwear to Pokemon Trading Cards. Established in 1915 at the World's Fair on Treasure Island, WCN was originally a San Francisco company that moved to Emeryville in 1988. The historic nature of Alameda Point holds great attraction to us. The image of the area and buildings themselves dovetail with our company's image as a longstanding Bay Area concern whose roots are by the Bay. West Coast Novelty Corp.'s previous heyday was in the 1930's and 1940's outfitting the troops heading off to the Pacific Theatre with last minute souvenirs of Americana from Bowie knives to pillows with the girlfriend's embroidered initials. Since the current ownership took over in 1981, WCN has grown dramatically. Annual sales have increased two hundred fold to well over $20 million. West Coast Novelty Corp. employs approximately 70 people in various levels of blue and white collar jobs. Our growth pattern indicates that we will be hiring additionally every year. Our management style has been to promote from within. Many of our current sales force and West Coast Novelty Corporation National Sales Office 1334 Lincoln Blvd., Suite 140 Santa Monica, California 90401 310- 458 -0545 FAX 310 - 458 -2025 Corporate Headquarters 1353 59th Street Emeryville, California 94608 510 -547 -5450 Nationwide 800- 347 -7678 FAX 510 - 547.4416 management began with the company as basic hourly employees. We will be happy to work with city of Alameda officials to enhance the benefits to Alameda residents in terms of job creation. WCN is commited to a diverse and vibrant workforce and work environment. The location at Alameda Point is attractive for transportation reasons as well. Since much of what we distribute comes from overseas, the proximity to the port and other ground distribution hubs is important. As the area develops, we are amenable to developing a retail presence as well, if appropiate. Certainly our product line would make for an attractive on -site outlet or company store. I hope that we can make a compelling case to you for the merits of having West Coast Novelty Corp. as a long term presence at Alameda Point. Enclosed you will find catalogs picturing some of our line. Feel free to call me at 1 800 34 -SPORT and/or come by our 1353 59th St. facility in Emeryville. Respectf Ily, Brian T. McCroden CEO