2003-07-22 Special Joint CC CIC Minutes MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND
COMMUNITY IMPROVEMENT COMMISSION MEETING
TUESDAY- -JULY 22, 2003- -5:25 P.M.
Mayor/Chair Johnson convened the Special Joint Meeting at 6:31 p.m.
ROLL CALL - Present: Councilmembers/Commissioners Daysog,
Kerr, Matarrese and Mayor/Chair Johnson –
4.
Absent: None.
The Special Joint Meeting was adjourned to closed session to
consider:
(03-355A CC/03-040 CIC) Conference with Real Property Negotiator;
property: Enterprise Landing, Alameda Point; Negotiating parties:
Community Improvement Commission, City of Alameda, Catellus
Development Corp., and ACET; Under negotiation: Price and terms.
Following the Closed Session, the Special Joint Meeting was
reconvened and Mayor/Chair Johnson announced that direction was
given to the Real Property Negotiator.
(03-355B CC) Resolution No. 13620, “Making Findings Concerning a
Proposed Bio-Technology Incubator at the Former Fleet Industrial
Supply Center and Pledging City Support for the Project via a
Waiver of Certain Development Impact Fees.” Adopted.
Sandre Swanson, Alameda resident and Congresswoman Barbara Lee’s
office representative, stated the bio-incubator activity in Alameda
has been underway for over six years; there is an opportunity to
have a larger incubator; encouraged adoption of the resolution;
stated once the Council takes action, EDA [Economic Development
Administration of the federal government] will release approved
project funds; there was concern about Item 4 [of the resolution],
which sets a rigid timeframe of two years; suggested Council
consider modification to make two years a goal, not a firm
requirement, to allow reasonable delays that are not ACET’s fault;
stated EDA has indicated the lien will be approved; urged the
Council to remain open to allowing ACET to return to Council with
any delays.
Vice Mayor Daysog stated the City has an opportunity to build on
the emerging biotech sector in Alameda with ACET; the wording of
the resolution should reflect an unqualified match for EDA;
contingencies should not be included in [resolution] Item 4;
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Alameda City Council and Community Improvement Commission
July 22, 2003
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suggested Item 4 be eliminated; stated two years should be a goal.
Vice Mayor Daysog moved adoption of the resolution, with Item 4 of
the resolution changed accordingly to make the match not contingent
and to reflect two years as a goal.
Councilmember Kerr inquired whether Vice Mayor Daysog’s motion
eliminates the side Agreement, to which Vice Mayor Daysog responded
in the negative.
Councilmember Matarrese seconded the motion.
Under discussion, Councilmember Matarrese stated the project is
very important; construction should be finished in two years if
there are no unforeseen delays; the Council should revisit the
matter if there is a delay.
Mayor Johnson concurred with Councilmember Matarrese; stated the
matter could be addressed by having scheduled reporting to the City
on the construction schedule and the progress.
The Council concurred with Mayor Johnson’s suggestion.
Councilmember Kerr stated that she has concerns about the
Agreement; ACET has made requests to Alameda Reuse and
Redevelopment Authority to reduce rents and make concessions; ACET
is requesting to continue to occupy its current site rent-free for
a year; the City requested a history of incubator graduates and has
not received a list showing economic benefit to Alameda; the City
will receive $1.22 million from Catellus for the land sale; the
City is expected to construct $1.2 million in infrastructure to
enable ACET’s construction; studies have not been done; the
developer will probably be Catellus, which has not promised
infrastructure can be completed for $1.2 million; part of the deal
is that EDA will get the first deed of trust and the City would
have a second deed of trust; however, Vice Mayor Daysog is
recommending that the City forego the security of a second deed of
trust; if EDA took over the property, there would be no property
taxes; ACET might not pay property taxes; economic benefit is
doubtful; infrastructure costs pose a risk; ACET is requesting a
fee waiver, which involves money for police and fire services.
Vice Mayor Daysog stated that the City wanted to have a second lien
on the property; however, if the City conditioned the project on
the second lien, EDA would not interpret the fee waiver as an
unqualified match and would not distribute the millions of dollars
ACET needs to begin construction; the City decided to pursue the
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Alameda City Council and Community Improvement Commission
July 22, 2003
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second lien on a side basis; the biotech industry is sprouting in
Alameda; the City should work with ACET to ensure that incubation
business remain in Alameda.
Mayor Johnson stated infrastructure costs are part of the City’s
deal with Catellus; the matter has come to the Council to consider
the $200,000 fee waiver; the City’s deal with Catellus is that
Catellus will purchase the property from the City and the City will
pay to put in infrastructure; that she is comfortable with staff’s
$900,0000 infrastructure estimate; there is room for additional
costs within $1.2 million; currently, the property does not
generate tax because the City owns it; if title went to the federal
government, the property would probably be sold back to the private
sector.
On the call for the question, the motion carried by the following
voice vote: Ayes: Councilmembers Daysog, Matarrese and Mayor
Johnson – 3. Noes: Councilmember Kerr – 1.
Councilmember Matarrese stated approval is a big step forward for
economic development; federal money will come to Alameda to improve
property.
Mr. Swanson noted the project is the largest biotech incubator
project in the nation; the project will cost $8 million; the
federal government is providing $6.4 million to make the project
happen in Alameda; noted Congressman Pete Stark’s office is
committed to making the project a success.
(03-047 CIC) Resolution No. 03-114, “Making Findings Concerning a
Proposed Bio-Technology Incubator at the Former Fleet Industrial
Supply Center and Pledging Community Improvement Commission Support
for the Project via Below Market Sale and Provision of Backbone
Infrastructure to the Site.” Adopted.
Commissioner Daysog moved adoption of the resolution with the same
changes [as the Council resolution] to make the fee waiver not
contingent and make two years the construction goal.
Commissioner Matarrese seconded the motion, which carried by the
following voice vote: Ayes: Commissioners Daysog, Matarrese and
Chair Johnson. Noes: Commissioner Kerr – 1.
Under communication, in response to Councilmember/Commissioner
Matarrese’s question about the Bridgeside purchase [at the July 21,
2003 Special CIC Meeting], the City Manager/Executive Director
stated the property closed today; the City owns the Bridgeside
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Alameda City Council and Community Improvement Commission
July 22, 2003
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center; the City is released from the terms of the Settlement
Agreement, which prohibited disclosure of the purchase amount; the
City will continue negotiations with the prospective developer;
hopefully, the matter will return to the CIC within sixty days.
Councilmember/Commissioner Kerr requested staff to provide the sale
price.
The Assistant City Attorney/Legal Counsel stated the sale price,
pursuant to the Settlement Agreement, was $6.25 million.
Mayor/Chair Johnson inquired what was the appraisal amount for the
property, to which the Assistant City Attorney/Legal Counsel
responded in excess of $7 million.
Councilmember/Commissioner Kerr noted the City’s purchase was for
less than the appraised price.
ADJOURNMENT
There being no further business, Mayor/Chair Johnson adjourned the
Special Meeting at 6:55 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, Community Improvement
Commission
The agenda for this meeting was posted in accordance with the Brown
Act.
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Alameda City Council and Community Improvement Commission
July 22, 2003
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