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1997-06-04 ARRA Minutes APPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, June 4, 1997 The meeting convened at 5:35 p.m. with Chair Appezzato presiding. 1. ROLL CALL Present: Chair Ralph Appezzato, Mayor, City of Alameda (left at 7:20 p.m.) Roberta Brooks, alternate to Vice-Chair Sandré Swanson, District Director, 9th Congressional District (left at 7:20 p.m.) Wilma Chan, Alameda County Board of Supervisors, District 3 (arrived at 5:50 p.m.) Jay Leonhardy, alternate to Henry Chang, Jr./Elihu Harris, Mayor, City of Oakland (arrived at 5:50 p.m.; left at 7:20 p.m.) Kathleen Ornelas, alternate to Ellen Corbett, Mayor, City of San Leandro Albert DeWitt, Councilmember, City of Alameda (arrived at 5:55 p.m.) Barbara Kerr, Councilmember, City of Alameda Tony Daysog, Councilmember, City of Alameda Lee Perez, Ex-officio, Base Reuse Advisory Group Ardella Dailey, Ex-officio, Alameda Unified School District Absent: Karin Lucas, Councilmember, City of Alameda 2. CONSENT CALENDAR 2-A. Report from the Executive Director recommending approval of the recommended priorities for the ARRA’s 1998 grant application to the Economic Development Administration. Member Kerr moved approval of the recommendation. Alternate Ornelas seconded the motion, which passed by the following voice vote: Ayes: 5. Noes: 0. Absent: 4 - Leonhardy, Chan, DeWitt, Lucas. 3. ACTION ITEMS 3-B. Report and recommendation from the Executive Director for changes and clarifications to applicable sections of the NAS Alameda Community Reuse Plan to add 17 acres to the City of Alameda’s Public Benefit Conveyance request for a Sports Complex, and other changes and clarifications to Section 8.0, Property Disposal Strategy. Alternate Brooks inquired how a Public Benefit Conveyance can be changed legally at this stage. Executive Director Miller replied that while we cannot add a new PBC at this stage, we can add acreage to an existing Public Benefit Conveyance. Speakers: Bob B. Radecke, Alameda Island Aquatics (Islanders), stated the Sports Complex would provide a positive approach to learning and development and would help revitalize the west end of Alameda. Jennifer Radecke, Alameda Island Aquatics, spoke in favor of the Sports Complex and providing a 50-meter pool for swimmers. 3-B _recycled paper 1 Melanie Anne Aeblieck, Alameda Island Aquatics, spoke in favor of the Sports Complex, stating that The Islanders have 100 swimmers and currently, distance swimmers need to go to Chabot, Concord, or Walnut Creek for a distance workout. Toby Chavez, BRAG Recreation Work Group, thanked everyone who had put their time and thought into planning for the 17 acres of soccer fields, tennis courts, a gymnasium, softball field, etc. that comprise the Sports Complex plan. He added that the Sports Complex will not happen overnight and will take approximately 20 years to completely build out. Maria Antonov, a sophomore at Alameda High School and a member of the Alagators swim team, spoke in favor of the motion, saying she knew the swimming community will work hard to find the funding for a new pool. Dr. Robert Deutsch, Alameda Soccer Club Board of Directors, stated that this is a chance to provide some land and recreational facilities as a legacy for our children and the future. Kelly Gallagher, sophomore at Alameda High School and member of the Alagator Swim Team, asked the ARRA to approve the Sports Complex with a 15-meter pool to train in that will enable Alameda teams to compete on an equal footing with other area teams. Patricia Packard, Vice President of the Alameda Soccer Club and 20-year Alameda resident, stated that the proposed Sports Complex will offer healthy recreation to area citizens. The Alameda Soccer Club has committed to financial support and a willingness to work with representatives of other sports to make the fields of our dreams a reality. Chair Appezzato announced that just a few days ago the Alameda Soccer Club gave the City a $10,000 check to help defray expenses. On behalf of the City, he thanked all those who donated funds. Karen Simontacchi, Alameda Soccer Club, stated that the Sports Complex is not only important to the children of Alameda but will benefit the entire region and its economy. Warren Hood, Alameda Soccer coach for nine years, spoke in favor of the motion, pointing out that since he began coaching, soccer fields have diminished by less than half and the children are running on fields of play that many adults would dread to walk on. Member Daysog moved acceptance of the report and recommendation. Alternate Brooks seconded the motion, which passed by unanimous voice vote: Ayes: 8. Noes: 0. Absent: 1 - Lucas. 3-C. Report and recommendation from the Executive Director that the ARRA governing body authorize the Executive Director to draft and sign a letter to Naval Sea Systems Command (NAVSEA), Ships Donation Program, requesting that NAVSEA establish August 15, 1997 as the deadline for a final donation application for the U.S.S. Hornet and that NAVSEA make its decision no later than September 30, 1997. Chair Appezzato asked Executive Director Miller if the Aircraft Carrier Hornet Foundation (ACHF) was aware of this agenda item. Ms. Miller answered that ACHF was not only aware of it, they concur with the recommendation and suggested the August 15 date. Speakers: Neil Patrick Sweeney, an interested citizen, stressed the importance of the Hornet for its tourism value and the money that tourism will bring to Alameda. He also spoke in favor of the Bullet Train, building ferry boat piers, and USCSF Research Hospital. Richard Neveln, an interested citizen, spoke in favor of the Hornet, stating that he hoped the Navy was given some “wiggle room” in the letter to allow them to pay for pier space if they need longer to think. _recycled paper 2 Ann Mitchum, Emeryville resident, voiced her support of the Hornet and asked why MARAD is paying millions of dollars to dock their ships but the Navy is unwilling to be responsible for the Hornet, which is also a Navy vessel. Executive Director Miller explained that MARAD is not under the Department of Defense; Maritime Administration ships are Department of Transportation vessels. Bob Rogers, Executive Vice President of the Aircraft Carrier Hornet Foundation, stated that they suggested the dates in the recommendation because they want to go forward. ACHF is wrapping up their fundraising, they have some very exciting things happening, they are very supportive of ARRA, and he thanked staff for they support. He further stated that ACHF is probably the only organization that actually wants to pay rent. Alternate Brooks asked what was motivating the recommendation. Executive Director Miller answered that there is a need to know if the ship is not going to make it into the ship donation program to ACHF because the Navy is then going to have to decide what they are going to do with the ship. Also, the Navy is not willing to pay rent equivalent to what the MARAD ships are paying. Ms. Brooks then stated that if there is anything that Congressman Dellums’ office can do about that part of the problem, to let her know. Chair Appezzato stated that if the ship fails to make it into the ship donation program to the Hornet Foundation, the Navy is ultimately responsible for removing the ship from our port. Member DeWitt moved to accept the recommendation. The motion was seconded by member Daysog and it passed by unanimous voice vote: Ayes: 8. Noes: 0. Absent: 1 - Lucas. 3-D. Report and recommendation from the Executive Director requesting the governing body to authorize ARRA staff to prepare and issue an RFP for a property manager to renovate, lease, and manage all or part of the available units in West housing. Speakers: James Sweeney, Alameda citizen and member of the BRAG Housing Subcommittee, stated that the first and foremost theme in discussions about the housing is that these old apartments and old buildings have to come down. The vast majority of Alameda citizens have a fear of the ghettoization of the old houses, which are deteriorating from day to day. He asked that deconstruction be looked at in this RFP. Bill Smith, Emeryville resident, discussed the latest issue of the Base Closure News, which has a cover article on 368 units of housing in Fort Ord. The same firm handling the Fort Ord housing has done 3,300 units in the Bay Area for the low income, the disabled, the homeless, and people on welfare. He suggested that we look at this organization to see what they could do at NAS. Ann Mitchum, Emeryville resident, agreed that due to the wear and tear and state of these units, they would be considered substandard lease or rental housing. She recommended that no action be taken at this time and that ARRA consider selling the property to encourage pride of ownership instead of bringing down rental values because of the proliferation of rental units. Executive Director Miller stated that the staff recommendation was to go out to bid for the 19 Big Whites and 32 single-family, ranch-style homes with an option to bid on the townhouse and apartment units to see what the private sector would do in renovating and leasing those units. She stressed that the ARRA would not be obligated to follow through. _recycled paper 3 Alternate Brooks stated that the discussion of destroying units constructed in 1964 and 1966 seems bizarre to her as she lives in a 1941 house which is still going strong. She added that she did not know why ARRA should not pursue studying this and she hoped she was not hearing that we were going to tear down 18 townhouses and 242 apartments. Ms. Miller answered that the staff recommendation was to issue an RFP to bid on the Big Whites and single-family homes and see what the private market would do with the townhouse and apartment units. Alternate Leonhardy asked what would happen to these units if they are not leased or rented? Executive Director Miller answered that they would be boarded up. Alternate Leonhardy asked if ARRA is willing to have vacant housing throughout that much of that complex? Ms. Miller stated that would be the result. Mr. Leonhardy mentioned the associated blight conditions that would follow with boarding up that many units. He then asked that, as the Tidelands Trust significantly inhibits long-term planning or transition, if any study been made of possibly trading the housing out of the trust. Ms. Miller stated that we know that the State Lands Commission is going to be agreeable to “grandfathering in” the existing housing for some period of time. She added that there are less than 40 units in the trust but that the area includes most of the Big Whites. Member Daysog said that the boarding up issue raises the issue of looking into the cost of deconstruction on these units. He further suggested that if an RFP is being let out on renovating, leasing, and managing some of the units, he would like to include deconstruction as part of the information gathering process. He added that the San Francisco Weekly recently had an article on Project Area Committees and how that is affecting redevelopment areas in the City and County of San Francisco. Mr. Daysog requested a report on Project Area Committees so that he has a better understanding of the issue. Member Kerr stated that if there is anyone living within a redevelopment area when it is formed, then there is a requirement for a Project Area Committee (PAC)—and any number larger than 25 may trigger this. The PAC has great legal power and takes a 2/3rds vote of the governing body of the redevelopment area to override their decisions. Special legislation was passed last year relating to base closure redevelopments which overrides the general redevelopment law in California. Overriding that is last year’s special legislation initiated by Barbara Lee that relates specifically to Alameda Naval Air. Redevelopment lines may have to be drawn to exclude the housing. She added that the City Attorney’s office has been working with a legal firm that specializes in this and before entering any long-term firm commitments on the housing, ARRA should know how or if this might affect redevelopment. She stated that once this empty housing is put on the market, then there is a one-for-one replacement housing requirement. This becomes a very serious commitment for the City of Alameda to do a one-for-one replacement and income levels have to be matched. Ms. Kerr asked Assistant General Counsel Highsmith to comment on replacement housing. Assistant General Counsel Highsmith reported that the General Counsel’s office is currently working on an opinion to answer questions about whether leasing properties within an intended redevelopment area will trigger replacement housing and relocation costs as well as other questions voiced this evening. Alternate Leonhardy suggested that if you have to do replacement housing, you have to do 20% set-asides from the redevelopment funds for low and moderate income housing development and those costs might be offset right there, straight across. _recycled paper 4 Ms. Kerr asked that in the first sentence of the final paragraph of page four of the staff report, after the phrase “. . . issue an RFP to find a property manager to renovate, lease, and manage” the word “or deconstruct” be inserted. Member Kerr stated her preference that the RFP address only the Big Whites and the single-family homes. Executive Director Miller asked for clarification—if the RFP was only for the Big Whites and the single-family homes, was deconstruction of those units still to be a part of the RFP? Member Kerr stated that in the case that the RFP was limited to the Big Whites and single-family homes, deconstruction would be left out. Member DeWitt voiced his preference for leasing the 19 Big Whites and 32 single-family homes. He added that perhaps the financial benefit of renting the apartment units would not be beneficial to the City given possible relocation fees and whatever else might apply. In that case, the RFP might include what it would cost to deconstruct the apartment-type units. Member DeWitt moved to go forward with an RFP to find a property manager to renovate, manage, and lease the Big Whites and the single-family units. The motion was seconded by Member Kerr. Chair Appezzato restated the motion, to go forward with an RFP for the Big Whites and the single-family homes with an option to bid on the other housing to include looking at deconstruction if, in fact, the market does not bear using them, and the potential for tear-down and redevelopment in other areas. Member Kerr stated that she really wanted to limit it to the Big Whites and the 32 single-story units; otherwise, deconstruction should be included. Executive Director Miller explained that an RFP issued for firms that would deconstruct townhouses would go to a completely different audience than firms that do property management. Chair Appezzato concurred that if deconstruction becomes an issue, a different RFP can be issued. Member Leonhardy stated that the units that the ARRA is talking about boarding up are those immediately around the homeless housing units, which means continuing a blighted condition. Alternate Brooks added that the concept of examining these other issues makes sense and it would be helpful to know if the townhouse and apartment units are viable. Member DeWitt stated that he still has questions about the financial benefit of leasing the apartment units. Executive Director Miller quoted scenario #1, renting only the single-family and Big Whites would probably return about half-a-million dollars annually to ARRA revenue. Scenario #2, adding the townhouse units (6 buildings with 19 actual units) would result in additional revenues of between $130,000–$155,000. Scenario #3, adding the apartments, would result in an additional $800,000– $900,000 being generated. Alternate Brooks stated that unless an RFP goes out, the ARRA will not know whether anybody thinks this is viable. If no firms want to work with the apartments and townhouses, then the path is clear—they have to come down. If there are interested firms then questions on legal ramifications must be asked, a cost-benefit analysis can be examined, etc. Even if the RFP goes out for all housing, there is no obligation and the ARRA can reject all proposals if they so wish. Alternate Leonhardy asked Member DeWitt to accept a friendly amendment to include the apartments and townhouses with the management costs and benefits broken down by housing category. Member DeWitt accepted the friendly amendment. Member Kerr then withdrew her second. Member Daysog asked if deconstruction could be started on a second track tonight. _recycled paper 5 Counsel Highsmith answered that the issue of deconstruction was not on the agenda for discussion. The motion was seconded by Alternate Leonhardy and passed by the following voice vote: Ayes: 7. Noes: 1 - Kerr. Absent: 1 - Lucas. 3-E. Report and recommendation from the Executive Director that the ARRA governing body authorize the Executive Director to draft two letters for signature by the ARRA Chair and Vice-Chair stating the ARRA’s opposition to the Navy proceeding with an environmental screening methodology in which the California Environmental Protection Agency (Cal-EPA)/Department of Toxic Substances Control (DTSC) and the U.S. Environmental Protection Agency (U.S. EPA), Region 9 will not concur. One letter will be sent to RADM David J. Nash, Commander, Naval Facilities Engineering Command Headquarters and the second letter will be sent to Office of the Secretary of Defense, Environmental Security, att: Sherri Goodman. Dave Ryan, representing EFA West, stated that this is a serious issue and the Navy is working in partnership with the state addressing complex technical issues. He suggested the ARRA not take sides but encourage the Navy to work in a collaborative fashion with the state to resolve the issues. Chair Appezzato replied that when the Navy leaves the City will have to work with the state and meet state requirements. Alternate Brooks added that the ARRA has a fiduciary responsibility to the City to weigh in by advocating the property be left as clean as possible. Ardella Dailey, Co-chair of the RAB (Restoration Advisory Board) stated the RAB fully supports drafting and sending the recommended letters. Alternate Leonhardy moved to accept the recommendation. The motion was seconded by Member Kerr and passed by the following voice vote: Ayes: 8. Noes: 0. Absent: 1 - Lucas. 4. ORAL REPORTS 4-F. Oral report from the BRAG updating the ARRA on current activities. BRAG Chair Lee Perez commended all the sports interests that worked together to develop the Sports Complex proposal. The BRAG feels that it is beneficial to the redevelopment of Alameda Point to recruit an academic presence to replace PPU. Chair Perez stressed that the BRAG’s vote on the housing issue had been a very close vote and they felt the housing must be approached carefully. Doug deHaan reported that the Airfield Task Force is recommending a limited use airfield although the financial aspect still needs to be worked out. Chair Perez ended his report by stating that the BRAG continues to work with WABA and other west side groups on the issue of a commissary; they are working closely with the FISC Ad Hoc Task Force; and the BRAG continues—along with other groups—to look at some possible conflicts of interest on dual memberships. Chair Appezzato added that he would be selecting a new alternate. 4-G. Written report from the Executive Director updating the ARRA on: (1) Coast Guard Housing; (2) Airfield Workshop; (3) Public Trust Appraisal; and (4) BCDC Port Priority Designation. Executive Director Miller stated that the Airfield Workshop would not occur on June 19 and optional dates in July are being considered. 4-H. Oral report from the Executive Director (non-discussion items). 5. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT) _recycled paper 6 Richard Neveln, interested citizen, reported on the economics of an air show at Oshkosh, Wisconsin, which generated income of $88 million in one week. Neil Patrick Sweeney, an interested citizen, thanked the ARRA and the BRAG volunteers for their contributions to the region. Kurt Bohan passed, stating that he would send in a letter. Bill Stremmel, recent Alameda resident, complained of the locked gates to the northwestern end of the base that has been declared off-limits to all human activities due to the nesting season of the Least Tern. He stated that there is always a socioeconomic and environmental price when property is restricted to a narrowly defined purpose and it has serious implications for overall redevelopment. Richard Neveln stated that a Walgreens at Atlantic and Webster does not set a very comfortable tone to the entrance of Alameda Point and suggested that Frys Electronics would set a better tone. Bill Smith, an Emeryville resident, discussed deconstruction and methods of removing lead paint stating that it is much more difficult to deconstruct than it is to construct. Ann Mitchum, an Emeryville resident, stated that the Navy spends tens of thousands of dollars per Big White per year on the maintenance, which makes the viability of leasing the Big Whites and the other units economically weak. Deconstruction is also expensive and economically weak. 6. COMMUNICATIONS FROM GOVERNING BODY Member Daysog stated that although deconstruction was not included in the final motion [item 3-D], it will not be dropped. If RFP responses do not reflect neighborhood values and City priorities, deconstruction will have to be discussed. He further stated that options were left open such as leasing out the housing. And by leaving West Housing open, another option is the possibility of moving some of the homeless housing in East Housing to West Housing, especially in light of the type of housing that is being considered in East Housing. 7. ADJOURNMENT The meeting was adjourned by Member DeWitt at 7:37 p.m. Respectfully submitted, Margaret E.Ensley ARRA Secretary _recycled paper 7