Ordinance 3167CITY OF ALAMEDA ORDINANCE NO. 3167
New Series
APPROVING A LEASE AND AUTHORIZING THE CITY MANAGER
TO EXECUTE DOCUMENTS NECESSARY TO IMPLEMENT THE
TERMS OF A 10 YEAR LEASE WITH ONE FIVE -YEAR OPTION TO
RENEW AND AN OPTION TO PURCHASE WITH ST. GEORGE
SPIRITS, INC., A CALIFORNIA CORPORATION, FOR BUILDING 21
LOCATED AT 2601 MONARCH STREET AT ALAMEDA POINT
WHEREAS, St. George Spirits, Inc. is an artisanal distillery company and
currently occupies Building 21 located at Alameda Point; and
WHEREAS, St. George Spirits, Inc. entered into the original lease agreement
for Building 21 in 2004 with the City of Alameda; and
WHEREAS, St. George Spirits, Inc. is currently in their second amendment to
that original lease agreement; and
WHEREAS, the new lease agreement with St. George Spirits, Inc. will replace
the original lease agreement; and
WHEREAS, Building 21 consists of approximately 65,000 square feet of
rentable square feet; and
WHEREAS, St. George Spirits, Inc. will occupy Building 21 and have the right,
on an exclusive basis, to have its employees and visitors park in the adjacent
paved areas; and
WHEREAS, the Premises will be used for the production, storage and
distribution of alcoholic beverages and complementary products, retail sales of
spirits and related merchandise and complementary products, special events and
related activities, and a restaurant and offices; and
WHEREAS, the monthly base rent over the ten years of the lease is $35,100
for year one, $36,153 for year two, $37,237.59 for year three, $38,354.72 for year
four, $39,505.36 for year five, $40,690.52 for year six, $41,911.24 for year seven
$43,168.57 for year eight, $44, 463.63 for year nine, and $45,797.54 for year ten;
and
WHEREAS, if the five -year extension option to renew is exercised, the monthly
base rent will start at $47,171.47 for year one and will increase 3% at the beginning
of each year of the extension option renewal term; and
WHEREAS, St. George Spirits, Inc. has an option to purchase Building 21 once
the City provides a Notice of Completion of Subdivision Condition for a price of $8
million, or no less than $7.9 million, if a restaurant has been substantially
constructed and is open to the public; and
WHEREAS, St. George Spirits, Inc. will be required to provide a security
deposit in the amount of $16,250 and the lease contains the standard insurance,
indemnity, assignment and termination clauses the ARRA required in its leases
and compliant with the Lease in Furtherance of Conveyance (LIFOC).
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of
Alameda that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or his designee is hereby
authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease
with St. George Spirits, Inc., a California corporation, for Building 21 at Alameda
Point for ten years with one five -year option to renew, subject to such technical or
clarifying revisions as are reasonably determined necessary by the City Manager
and approved by the City Attorney, and the City Clerk is hereby authorized and
directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this
ordinance if, for any reason, held to be invalid or unconstitutional, such decision
shall not affect the validity or constitutionality of the remaining portions of this
ordinance. The City Council of the City of Alameda hereby declares that it would
have passed this ordinance, and each section, subsections, clause, or phrase
hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases are declared to be invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the
expiration of thirty (30) days from the date of its final passage.
Presiding Officer of the City Council
Attest:
L&1��
Lara Weisiger, C ty lerk
I, the undersigned, hereby certify that the foregoing ordinance was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the 1 s' day of November, 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
official seal of said City this 2nd day of November, 2016.
Lara WeisO�r City Clerk
City of Alameda
APPROVED AS TO FORM:
SeniorftsistaW City Attorney