2008-08-19 ARRA PacketThe Regular Meeting of the
Alameda Reuse &
Redevelopment Authority
(ARRA) scheduled for
August 6, 2008
has been canceled.
A Special Meeting is
scheduled on Tuesday,
August 19, 2008
Alameda Reuse and Redevelopment Authority
Interoffice Memorandum
August 19, 2008
TO: Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
FROM: Debra Kurita, Executive Director
SUBJ: Authorize Negotiation and Execution of a Sublease for RockWall Wine
Company, Inc. at Alameda Point
BACKGROUND
The Alameda Reuse and Redevelopment Authority (ARRA) governing body approves all Alameda
Point subleases with a lease term greater than one year. The proposed sublease for RockWall Wine
Company, Inc. is for five years, plus three, five -year options to extend.
DISCUSSION
Attachment A describes the business terms for the proposed sublease for RockWall Wine Company,
Inc. in a portion of Building 24. The rent for Rockwall Wine Company, Inc. is $165,600 annually, or
$0.3450 per sq. ft. in the first year. There is a 3% increase each year in the subsequent years,
including the first option period, with an adjustment to current market rate at year 10, for catering,
wine production and wine storage. The lease provides for RockWall Wine Company, Inc. to occupy
Building 24 for the first three months of the lease without paying rent to facilitate set -up, obtaining a
Certificate of Occupancy, and the necessary bonding and licensing with federal agencies. Building 24
is in good condition.
RockWall Wine Company, Inc. has requested a lease for five years plus three, five -year options to
extend the lease. There is language in the lease that once the extension has become operative, the
lease can be cancelled with a 60 day written notice.
The RockWall Wine Company is represented by SABRE Real Estate Group. The base rent for the
five year term, including 3% annual increases and deducted three months of free rent, equals
$837,793, and the 5% commission would be $41,890. SABRE has requested the payment of their
commission in a schedule that differs from the ARRA's standard practice in the following:
The landlord will pay SABRE $10,000 within 30 days of a fully executed lease. After the free rent
period and upon commencement of base rent, the base rent for the first five months shall be $7,422
instead of $13,800 because the tenant shall pay SABRE $6,378 a month, as part of the commission.
In accordance with the Exclusive Negotiating Agreement between the ARRA and SunCal
Companies, this lease has been discussed with representatives from SunCal Companies and has their
concurrence.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
BUDGET CONSIDERATION / FINANCIAL IMPACT
August 19, 2008
Page 2
This lease will generate $82,310 instead of $124,200 in the first year because of the three months of
free rent and the payment of $41,890 commission. Subsequently, rent is $165,600 annually. These
funds will be retained by the ARRA.
RECOMMENDATION
Authorize Negotiation and Execution of a Sublease for RockWall Wine Company, Inc. at Alameda
Point.
By:
Respectfully submitted,
7
Leslie Little
Development Services Director
anette Banks
Finance & Administration Manager
Attachment: A. Proposed Sublease Business Terms
B. Site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT
BUILDING
SIZE (SF)
TERM
RENT
RockWall Wine
Company, Inc.
24
40,000
5 yrs + Three 5
yr Extension
Options
$13,800/mo.
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ATTACHMENT B
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Alameda Reuse and Redevelopment Authority
Interoffice Memorandum
August 19, 2008
TO: Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
FROM: Debra Kurita, Executive Director
SUBJ: Authorize Negotiation and Execution of a Sublease for Auctions by the Bay, Inc.
at Alameda Point
BACKGROUND
The Alameda Reuse and Redevelopment Authority (ARRA) governing body approves all Alameda
Point subleases with a lease term greater than one year. The proposed sublease for Auctions by the
Bay, Inc. is for three years.
DISCUSSION
Attachment A describes the business terms for the proposed sublease for Auctions by the Bay, Inc. in
a portion of Building 25. The rent for Auctions by the Bay, Inc. is $152,544 annually, or $0.35 per
sq. ft. in the first year and a 3% increase each year in the subsequent two years. The building will be
used for general office, warehousing, auctions and indoor antique fairs. The lease provides for
Auctions by the Bay, Inc. to occupy Building 25 for the first month of the lease without paying rent
to facilitate move -in. Building 25 is in good condition.
In accordance with the Exclusive Negotiating Agreement between the ARRA and SunCal
Companies, this lease has been discussed with representatives from SunCal Companies and has their
concurrence.
BUDGET CONSIDERATION / FINANCIAL IMPACT
This lease will generate $139,832 in the first year. These funds will be retained by the ARRA.
RECOMMENDATION
Authorize Negotiation and Execution of a Sublease for Auctions by the Bay, Inc.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
Re pecr lly submitt
Leslie Little
Development Services Director
By: Nanette Banks
Finance & Administration Manager
August 19, 2008
Page 2
Attachment: A. Proposed Sublease Business Terms
B. Site Map
ATTACHMENT A
PROPOSED SUBLEASE BUSINESS TERMS
TENANT
BUILDING
SIZE (SF)
TERM
RENT
Auctions by the Bay, Inc.
25
36,319
3 years
$12,712/mo.
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ATTACHMENT B
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City of Alameda
Alameda Reuse and Redevelopment Authority
August 19, 2008
TO: Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
FROM: Debra Kurita
Executive Director
RE: Authorize the Executive Director to Enter a Contract, through PM Realty Group,
with General Construction Company to Dredge the Alameda Point Channel and
Turning Basin in an Amount Not to Exceed $2,586,675
BACKGROUND
The Alameda Reuse and Redevelopment Authority (ARRA) is proposing to dredge the
navigational entrance channel to Alameda Point and the turning basin and dispose of the dredged
material at the Alcatraz Environs In -Bay disposal site. The Alameda Point entrance channel is
located in the eastern portion of San Francisco Bay at the west end of Alameda.
The proposed maintenance dredging episode involves the removal of accumulated sediment in
order to return the channel to a depth that would allow unencumbered maneuvering of vessels.
The proposed dredge depth is —34 feet below Mean Lower Low Water ( -34 feet MLLW) with a
two -foot over dredge tolerance.
The U.S. Navy acquired the property known as Alameda Point in 1936 and began constructing
the deep water port facilities in 1938. The Alameda Point Channel was used for berthing of
various Navy ships including aircraft carriers. The existing channel is approximately 1,000 feet
wide with a 2,450 -foot turning basin located on the eastern end of the approach channel. The
channel has an authorized depth of —42 feet MLLW and prior to decommissioning of the base,
had been maintained to a depth of —40 feet MLLW by the Navy. The Navy last dredged the
channel in November 1996, while the ARRA dredged the channel in October 2005. The 2005
ARRA dredge depth was -32 feet MLLW with a two -foot over dredge tolerance. The proposed
2008 maintenance dredging for the Alameda Point Channel and turning basin is deeper in order
to reduce the frequency of dredging. PM Realty Group (PMRG), the ARRA's property manager,
PMRG will use a City Attorney- approved foiui of contract to facilitate the proposed dredging
project utilizing the lowest bid received from four companies.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
DISCUSSION
August 19, 2008
Page 2
The ARRA placed an ad in the local press to request qualifications for bidding the project from
May 23 — June 3, 2008. Seven companies responded to the request and all were qualified to bid
on the project. The schedule for the selection was as follows:
June 23, 2008
July 1, 2008
July 8, 2008
July 16, 2008
Bid documents issued to the qualified bidders
Pre -bid meeting
Deadline for Questions
Bid due date.
Bids were received from four of the seven bidders as indicated in bold:
• American Civil Constructors, Benicia, CA - $3,523,020
• Dutra Dredging Company, San Rafael, CA - $2,422,450
• General Construction Company, Poulsbo, WA - $2,069,340
• Great Lakes Dredge & Dock Company, LLC, Oak Brook, IL
• Manson Construction Co., Richmond, CA - $2,336,000
• Salt River Construction Corporation, Tiburon, CA
• Vortex Marine Construction, Inc., Oakland, CA
Dredging is set to begin September 2008 and will last for thirty days. All relevant permits were
received prior to bidding the project.
BUDGET CONSIDERATION / FINANCIAL IMPACT
The bid for this project is $2,069,340 with an added 25% contingency to allow for incidental
overdredging or removal of additional material shoaled since the last channel survey. The total
expenditure for the contract is $2,586,675.
There is no fiscal impact to ARRA lease revenue or the General Fund. The U.S. Maritime
Administration (MARAD) reimburses the ARRA for all dredge events as a condition of their
long -term lease.
RECOMMENDATION
Authorize the Executive Director to Enter a Contract, through PM Realty Group, with General
Construction Company to Dredge the Alameda Point Channel and Turning Basin in an Amount
Not to Exceed $2,586,675.
Honorable Chair and Members of the
Alameda Reuse and Redevelopment Authority
Res c,t(lly submitted,
August 19, 2008
Page 3
7
Leslie Litt e
Developmen
rvices Director
By: Nanette Banks
Finance & Administration Manager