1996-06-05 ARRA Minutes APPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Wednesday, June 5, 1996
The meeting convened at 5:34 p.m. with Chair Appezzato presiding.
ROLL CALL
Present: Chair Ralph Appezzato, City of Alameda; Alternate Brooks for Vice-Chair Sandré
Swanson, 9th Congressional District (arrived at 5:43 p.m.); Vice-Mayor Charles
Mannix, City of Alameda; Alternate Jay Leonhardy for Councilmember Henry
Chang, Jr., City of Oakland; Councilmember "Lil"Arnerich, City of Alameda;
Alternate Sheila Young for Mayor Ellen Corbett; Councilmember Albert DeWitt,
City of Alameda; Alternate Greg Alves for Councilmember Karin Lucas, City of
Alameda; Supervisor Wilma Chan, Alameda County Board of Supervisors,
District 3; Doug deHaan for Ex-officio Lee Perez, Chair, Base Reuse Advisory
Group (BRAG) and Ex-officio Ardella Dailey, Alameda Unified School District.
CONSENT CALENDAR
Chair Appezzato stated that Items 2D and 2F would be pulled for discussion.
Alternate Leonhardy moved approval of the remainder of the Consent Calendar.Alternate Alves
seconded the motion, which carried the following voice vote: Ayes: 8. Noes: 0. Abstain: 0. Absent:
1 - Member Swanson.
Items so enacted or adopted are indicated by an asterisk.
*2-A. Approval of Minutes - Special Meeting of April 9, 1996, Special Meeting of May 1, 1996,
and Regular Meeting of May 1, 1996. Approved.
*2-B. Recommendation from the Executive Director that the ARRA Approve the Extension for
Consultant Contracts with EDAW Inc. for Continued Work on the FISC Alameda Annex
Community Reuse Plan and with Zander Associates for Environmental Assistance on the U.S.
Fish and Wildlife Service, Section 7 Consultation Process. Approved.
*2-C. Recommendation from the Executive Director that the ARRA Request Immediate
Funding for Base Cleanup of the Fleet Industrial Supply Center–Alameda Annex for its Early
Reuse and Redevelopment and Direct Staff to Communicate the Request to the Department of
Defense, U.S. Congress, and President of the United States. Approved.
*2E. Report from the Executive Director Recommending Adoption of a Resolution by the
Alameda Reuse and Redevelopment Authority (ARRA) Authorizing the ARRA Executive
Director to Represent the ARRA and Apply for LAMBRA (Local Area Military Base Recovery
Act) Designation. Adopted.
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2-D. Recommendation from the Executive Director that the ARRA Approve a Policy for the
Transfer of Certain NAS Alameda Properties to Pan Pacific University for Educational Uses
Through the Base Reuse and Redevelopment Process.
Executive Director Miller explained that this is a an attempt to clarify the ARRA’s policy on this
conveyance to Pan Pacific University (PPU). PPU needed to show they will have title in order to
effectively raise funds. Chair Appezzato asked if the property could be conveyed with a reversion
clause to the City of Alameda, to which Ms. Miller responded “yes.” Alternate Alves voiced his
opinion that he preferred the previously discussed 25-year lease with 25-year options. A discussion
followed among the governing body that included questions on whether or PPU was owned by a
foreign entity, if PPU could sublease their buildings, and concern regarding the change from the
intent to lease for 25 years with 25-year options to a title transfer.
Ms. Miller explained that PPU was a duly incorporated USA non-profit entity eligible through the
Department of Education for a no-cost federal conveyance; however, PPU had agreed to let the
ARRA take the property as an Economic Development Conveyance, which would allow the property
to revert to the City of Alameda in the event that PPU was unsuccessful in obtaining funding.
ARRA Planner Tuttle explained that PPU had participated in a thorough Federal Public Benefit
Conveyance (PBC) screening with all other federal conveyance applicants. Alternate Leonhardy
stated that the title transfer was consistent with our previous intent.
Speakers:
Bill Garvine, Alameda Chamber of Commerce spoke in favor of PPU and reminded the assembly
that UCSF medical school had declined to apply for NAS property.
Dr. Peter Sun, President of Pan Pacific University, clarified that PPU is an American institute and
that he is an American citizen. He added that PPU had agreed to an Economic Development
Conveyance in order to provide the City of Alameda with a guarantee that the property would revert
to the City if PPU no longer existed. However, their original Public Benefit Conveyance request
had not been withdrawn and he was asking nothing more than PPU could get through the PBC
process.
Neil Patrick Sweeney spoke in favor of Pan Pacific University, the computerized superhighway, and
televising meetings.
John Thayer Fee spoke in favor of Pan Pacific University.
Member DeWitt questioned whether a Public Benefit Conveyance through the Department of
Education could be granted on Public Trust Lands. Assistant General Counsel McLaughlin stated
that it was a hard question and it was her impression that title could not be given on the land unless
there was an act of the State Legislature.
Member Arnerich asked if, after PPU gets title to the lands, they can sell that title and if so, to
whom? Executive Director Miller stated that the title transfer would contain a reversion clause
guaranteeing an automatic reversion to the City of Alameda should PPU no longer exist. Member
Arnerich stressed that the reversion clause must be included. Alternate Brooks stated that it is
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necessary for PPU to possess the title in order to find funding and that they must given the
opportunity to succeed.
Alternate Alves made a motion to maintain the agreement for a 25-year lease with a 25-year option
and that a title of transfer not be pursued at this time. Member Arnerich seconded the motion. The
motion failed by the following roll call vote: Ayes: 3 - Arnerich, DeWitt, Alves. Noes: 6 -
Leonhardy, Young, Brooks, Appezzato, Mannix, Chan. Abstain: 0. Absent: 0.
A motion was made by Member Mannix that the properties designated in the Community Reuse Plan
for use by Pan Pacific University will be leased to PPU at no cost and that title to these properties
will transfer to PPU when they are freed from the Public Trust. The motion was seconded by
Alternate Brooks. Alternate Leonhardy added a friendly amendment that it be made explicit that the
title conveyance include reversion clauses and title restrictions that limit transfers only between the
City of Alameda and Pan Pacific University and no third-parties. The friendly amendment was
accepted. The motion carried by the following voice vote: Ayes: 7. Noes: 2 - DeWitt, Alves.
Abstain: 0. Absent: 0.
2-F. Report from the Executive Director Recommending that the ARRA Authorize the
Executive Director to Sign a Letter of Agreement with the City of Alameda’s Bureau of
Electricity for Reimbursement of Modification Costs to the Trunk System Extension.
A motion was made by Alternate Alves and seconded by Member DeWitt to authorize the Executive
Director to sign the letter of Agreement with the Bureau of Electricity as requested. The motion
carried by a unanimous voice vote: Ayes: 9. Noes: 0. Abstain: 0. Absent: 0.
ACTION ITEMS
3-G. Report and Recommendation from the Executive Director that the ARRA Endorse a
Proposal to Lease Portions of the NAS Alameda Piers for Berthing the Aircraft Carrier Hornet
as a Private Museum and Execute a Resolution of Support.
Executive Director Miller gave a short introduction, after which Chair Appezzato requested that
speakers who speak in support of the USS Hornet do not cover the information that has already been
presented and keep their remarks to two minutes or less. Gerald Lutz of the Aircraft Carrier Hornet
Foundation(ACHF) introduced Admiral Sieberlich. Admiral Sieberlich, who was the last
Commanding Officer of the Aircraft Carrier Hornet, was present at the Apollo 11 retrieval and the
decommissioning of the USS Hornet. Chair Appezzato welcomed Admiral Sieberlich. Mr. Lutz
stated that the main focus of the Aircraft Carrier Hornet Foundation was to provide a community
resource to the City of Alameda and “a national asset of significant magnitude that will achieve
national recognition and associated economic, social, and cultural benefits to the local community.”
Mr. Lutz presented plans for the Hornet, including the preference of ACHF that the Hornet be
berthed at the Seaplane Lagoon. He stressed that the ACHF must have the support of the ARRA and
that several senior federal officials felt that ACHF did not have local support; therefore, a Resolution
of support was imperative. Mr. Lutz requested that the ARRA modify its proposed Resolution to
include two items:
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1. BE IT FURTHER RESOLVED that the ARRA recognize and endorse the ACHF’s
economic requirements outlined in the plans as presented to the BRAG and ARRA, and
which is consistent with the ARRA’s reuse Plan. (item #1)
2. BE IT FURTHER RESOLVED that the ARRA provide advice and support as is
reasonable to ACHF and endorsements as requested by ACHF for its negotiations with
Federal Agencies that have expressed interest in providing economic support for ACHF
and its master plan. (item #2)
Peter Knudsen of ACHF then offered to answer questions. Alternate Brooks asked for clarification
on the meaning of “economic requirements” as it was very open-ended. Mr. Knudsen answered that,
in order to qualify for some base closure funds, ACHF must have ARRA’s endorsement that their
plans are consistent with the reuse plan—ACHF is not requesting any specific monies from ARRA.
Executive Director Miller made the following comments: She suggested that rather than a “BE IT
FURTHER RESOLVED” clause, a new “WHEREAS” clause be added that the plan for the Hornet
is consistent with the Community Reuse Plan. Her concern with item #2 was that one of the sources
of funding UCHF might be eligible for is EDA money. Any EDA money for base closure has to be
under the ARRA, which would have to submit the application. Demands for EDA money over the
next couple of years are going to be enormous. ARRA will probably get $4 million this year and a
fairly large EDA grant will be applied for next year to help with infrastructure improvements, as well
as money for streets and demoltion. ARRA will be hard-pressed to prioritize demands and she
wanted to be clear that if the requested language is adopted, it does not automatically mean that
ARRA would endorse a proposal for EDA funding for the Hornet.
Alternate Alves felt the Seaplane Lagoon was unsuitable for berthing the Hornet, as it would block
the views. Alternate Brooks voiced her concern that the competition for EDA money is incredible
and that item #2 is a strong statement that seems to imply more than the ARRA may be able to do.
Alternate Leonhardy stated that the phrase in item #2 “. . . support as is reasonable to ACHF” be
clarified. Peter Knudsen, ACHF, stated that “to ACHF” is a typo and would be eliminated from the
sentence. Alternate Leonhardy continued that the Resolution is not specific to any location. Further
discussion ensued regarding berthing sites, projected visitor statistics, transportation concerns, and
financial risk. Alternate Alves and Member Chan voiced their preference that an initially the lease
term be limited to five years.
Alternate Brooks asked that the following language be used for item #2: “That the ARRA provide
advice and support and endorsements as is reasonable for negotiations between ACHF and Federal
Agencies. Mr. Lutz indicated his acceptance of that language.
A motion was made by Member Arnerich that the Resolution (also called Tab B) as drawn by Kay
Miller be adopted with the addendas of Tab C with clarifications as stated regarding item #2. The
motion was seconded by Member Mannix.
Speakers:
Irv Hamilton, Alameda resident, spoke in favor of the Hornet, stating that it is a great historic asset.
Neil Patrick Sweeney, Alameda resident, spoke in favor of the Hornet and that we must “think
regionally.”
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Douglas Haines, Alameda resident, voiced his total support for the carrier and the benefits it will
bring to the City of Alameda.
Richard Nevelyn spoke in favor of the Hornet; however, he stated that he did not support the ACHF,
stating that it was a seven-member closed corporation, not a non-profit organization.
Jerry Lutz, ACHF, stated that ACHF is a 501 C3 corporation that, by law, must have a Board of
Directors and Bylaws. There are seven Trustees and a total of thirteen voting Board members, of
which seven live in Alameda.
Bill Garvine, Chamber of Commerce and School Board, spoke in favor of the Hornet and the ACHF.
Norma Bishop, NAS Alameda Base Transition Coordinator clarified that Naval Sea Systems
Command runs the ship donation program with stringent oversight. They closely examine the
Foundation, the formation of their Board of Directors, their sense of ethics, and how they operate.
She stressed that they look for a 10–15 (long-term) berthing commitment and if ARRA is serious
about supporting they Foundation, the agreement must be phrased to be flexible within the
regulations as they evolve to permit longer longer lease terms. Upon an inquiry from Chair
Appezzato, Executive Director Miller stated the BRAC restriction of five years may shortly be lifted.
She was hearing Alternate Alves and Member Chan arguing for a limit of five years; however,
NAVSEA is looking for a longer term commitment from the community. The present wording was
intended to recognize there is a five-year restriction now but if that restriction is lifted, we could
enter into a longer term lease. Chair Appezzato stated that we would know within five years if it was
going to be successful.
Alternate Alves stated he was thinking of a maximum term of five years only and he would like it to
state that it would definitely not include the western shore of the Seaplane Lagoon. Ms. Miller stated
that the lease would be for one of the NAS piers, probably pier 3. Alternate Alves asked for wording
specifically ruling out the Seaplane Lagoon. Alternate Leonhardy stated that the location would be
the responsibility of the land use process.
Mr. Knudsen, ACHF, stated that in any reasonable business transaction, a five-year or maximum
lease on the date of execution with normal provisions for renewal of that lease if certain conditions
are met, are acceptable. Member DeWitt stated that he believes the use of the piers is consistent with
the Community Reuse Plan and he was hoping that Alternate Alves would join together with the
governing body to support the Hornet to help make an economic go of the ACHF.
Executive Director Miller asked for clarification on the motion. Member Arnerich said it included
the ARRA Resolution and the ACHF language contained in item #1 and item #2 with the additions
and deletions presented.
Whereas ARRA recognizes and endorses ACHF’s economic requirements outlined in the plans
as presented to the Base Reuse Advisory Group (BRAG) and Alameda Reuse and
Redevelopment Authority (ARRA), and finds it consistent with the Community Reuse Plan; and
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Whereas ARRA will provide advice and support and endorsements as is reasonable for
negotiations between ACHF and Federal Agencies.
The motion carried by a unanimous voice vote: Ayes: 9. Noes: 0. Abstain: 0. Absent: 0.
ORAL REPORTS
4-H. Oral Report from the Executive Director on the Developer Selection Process for the Fleet
Industrial Supply Center (FISC).
Executive Director Kay Miller presented the process and timeline for developer selection for the
FISC site. An ad hoc working group is being assembled from members of the EDC, BRAG,
Chamber of Commerce, and West Alameda Business Association to help in the selection process.
4-I. Oral Report from the BRAG Updating the ARRA on Current Activities.
Doug deHaan reported that the NAS Alameda weekend tours are very successful; on July 20, BRAG
Appreciation Day will recognize the BRAG volunteers and solicit new members; the RV park is a
concern to the BRAG and they have requested the EBRPD to present their modified plan; and he is
glad ARRA accepted the Hornet, which is a business opportunity.
4-J. Oral Report from the Executive Director Updating the ARRA.
Executive Director Kay Miller reported there is not a quorum available for the July 3 ARRA
meeting; therefore, unless there is some pressing item, there will be no meeting in July.
There is an active lease proposal to continue operation of the airfield as a restricted use airfield.
EBCRC has agreed to fund the consultant that conducted the original study of a commercial airport
(which was found to be unfeasible) to analyze the suitability of a restricted use airport at NAS.
An RFP for port services will be released in July; the recommendation for an operator will be
submitted in September. Three new staff people have been hired: Brian Kalaharn (temporary) for
the EIS/EIR review; Ken Bowman, Assistant Facilities Manager; and Gretchen McDonald (who
could not attend the ARRA meeting) as Receptionist/ Secretary to replace Josi Jose.
The redevelopment legislation introduced Barbara Lee (AB 3129) and the general bill has passed the
Assembly. Status of negotiations for Rysher Studios, Carstar, and Giannotti were discussed. We
now have a master or prototype lease agreement with the Navy that should accelerate the leasing
process. Chair Appezzato requested that once a week a “Base Reuse Update” press release be sent to
the press outlining current lease activity.
Executive Director Miller then gave a “heads up” that she, Chair Appezzato, and Reuse Planner Paul
Tuttle have received invitations from Pan Pacific University to travel to Korea at PPU’s expense.
Assistant General Counsel Heather McLaughlin is looking into whether this is allowable and a
recommendation will be made at the August meeting.
5. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT)
Neil Patrick Sweeney, an Alameda citizen, announced the new ARRA telephone number, 864-3400
and spoke to advertising, transportation, and base cleanup issues.
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Bill Smith spoke about various base reuse issues.
Richard Nevelyn asked that the Aircraft Carrier Hornet Foundation incorporation documents be
examined; endorsed the weekend tours of the base; and suggested that a free electric shuttlebus be
sought to take visitors on base tours. Chair Appezzato suggested ARRA staff look into the matter
and report back.
ADJOURNMENT TO CLOSED SESSION TO CONSIDER:
At 7:45 p.m., the meeting adjourned to closed session for Conference with Legal Counsel –
Anticipated Litigation:
Initiation of litigation pursuant to subdivision (c) of Section 54956.9: 1 case.
Significant exposure to litigation pursuant to subdivision (b) of section 54956.9: 1 case.
READJOURNMENT TO PUBLIC SESSION AND ANNOUNCEMENT OF ACTION
TAKEN IN CLOSED SESSION, IF ANY
At 8:38 p.m., readjourment to public session occurred and it was announced that direction was given
to staff in both matters.
COMMUNICATIONS FROM GOVERNING BODY
None.
ADJOURNMENT
The meeting was adjourned by Chair Appezzato at 8:39 p.m.
Respectfully submitted,
Margaret E. Ensley
Secretary
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