Resolution 15130CITY OF ALAMEDA RESOLUTION NO. 15130
APPROVING CONSENT BY LESSOR TO THE BAY SHIP & YACHT
CO. LEASEHOLD MORTGAGE; AUTHORIZING AND DIRECTING
THE CITY MANAGER TO EXECUTE AND RECORD THE CONSENT
ON BEHALF OF THE CITY AND IMPLEMENT ITS TERMS, WITH
SUCH MINOR CHANGES ON THE ADVICE OF COUNSEL TO THE
CITY AS THE CITY MANAGER DEEMS APPROPRIATE;
AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND RECORD THE MEMORANDUM OF LEASE,
TERMINATION OF NON - DISTURBANCE AND ATTORNMENT
AGREEMENT, AND TERMINATION OF TIDELANDS LEASE; AND
TAKE SUCH OTHER ACTIONS AS MAY BE REASONABLY
NECESSARY TO FACILITATE CLOSE OF ESCROW ON THE
PROPOSED LOAN
WHEREAS, in 2012 the City Council approved a long -term lease ( "Lease ") to
Bay Ship & Yacht Co. ( "BSY ") of City -owned tidelands located at 2900 -3000 Main Street
(Ordinance No. 3058 adopted November 7, 2012); and
WHEREAS BSY operates a ship repair facility on the premises and on the
adjoining property ( "ACP Property "), owned by an affiliate of BSY, which properties
function as a single, integrated economic unit. BSY's ship repair business is an
economic engine for the City and important to the City's well- being. BSY employs more
than 350 people, helps train City youth for jobs in BSY's industry, pays taxes, is a major
component of the maritime sector of the City's economy, and contributes to the
community generally; and
WHEREAS the Lease provides that BSY may mortgage its interest under the
Lease with the consent of the City; and
WHEREAS BSY, pursuant to the Lease, has requested that the City grant its
consent to a proposed leasehold mortgage pursuant to the lease; and
WHEREAS the purpose of the proposed leasehold mortgage is to facilitate a $14
million loan from Wells Fargo Bank ( "Bank ") that will allow BSY to refinance on better
terms an existing loan it used to purchase, through its affiliate, the ACP Property, and to
allow BSY to purchase a former railroad right of way ( "UP ROW ") that bisects the ACP
Property; and
WHEREAS the loan will allow BSY to invest in its ship repair business, including
further improvements in the City's tideland premises; to improve the portion of the ACP
Property that is not currently being used for ship repair is in a severely deteriorated
condition; and, by acquiring the UP RPW, to unite the ACP Property under a single
owner and thereby facilitate its renewal; and
WHEREAS City staff has reviewed the terms of the proposed leasehold
mortgage along with certain supplemental information provided by BSY and' has
determined that the leasehold mortgage does not present a material risk to the City and
may reduce the risk to the City of a tenant default under the Lease; and
WHEREAS the proposed Consent by Lessor of Real Property ("Consent") does
not in any way amend the Lease or alter the rights or obligations provided thereunder;
and
WHEREAS, in addition to the requested Consent, BSY has requested the City to
record a Memorandum of Lease, a Termination of Tidelands Lease, and a Termination
of Non-Disturbance and Attornment Agreement, which memorandum and terminations
accurately reflect the status of the agreements described therein.
NOW, THEREFORE, BE IT RESOLVED that the City hereby grants its consent
to the proposed leasehold mortgage; and
BE IT FURTHER RESOLVED that the City authorizes and directs the Interim City
Manager to execute and record the Consent in substantially the same form as
presented to the City Council on behalf of the City, with such minor changes on the
advice of counsel to the City as the Interim City Manager deems appropriate, and to
implement its terms; and
BE IT FURTHER RESOLVED that the City authorizes and directs the Interim City
Manager to execute and record the Memorandum of Lease, Termination of Non-
Disturbance and Attornment Agreement, and Termination -of Tidelands Lease in
substantially the same form as presented to the City Council on behalf of the City; and
BE IT FURTHER RESOLVED that the City authorizes and directs the Interim City
Manager to take such other actions as may be reasonably necessary to facilitate close
of escrow on the proposed loan.
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on the 1 st day of March, 2016, by the following vote to wit:
AYES: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie
and Mayor Spencer — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of
said City this 2nd day of March, 2016.
k'c'
Lara Weisiger, CiVIerk
City of Alameda
APPROVED AS TO FORM:
Janet C. Kern, City Attorney
City of Alameda