2002-01-15 Joint CC CIC ARRA MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL,
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA), AND
COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY - - JANUARY 15, 2002 - - 7:25 P.M.
Mayor /Chair Appezzato convened the Joint Meeting at 7:38 p.m.
ROLL CALL - Present: Councilmembers /Authority Members/
Commissioners Daysog, DeWitt, Johnson,
Kerr and Mayor /Chair Appezzato - 5.
Absent: None.
AGENDA ITEM
(CC 02- 028 /CIC 02 -003) Recommendation to approve an Exclusive
Negotiation Agreement (ENA) with Alameda Point Community Partners
(APCP) for Development of Alameda Point.
Mayor Appezzato requested staff to provide a brief presentation.
The Development Services Director stated that following a 9 -month
process, which included public participation, ARRA selected APCP as
the Master Developer for 800 acres at Alameda Point; staff and APCP
used interest -based negotiation models for all negotiations and
will continue to do so; the ENA formalizes the relationship between
the City and APCP and provides framework to prepare all necessary
entitlement documents, such as the Disposition and Development
Agreement (DDA) and Master Plan; said documents are needed to
transfer the property to APCP and to implement APCP's development
plan; the ENA includes a 24 -month initial term, with one 12 -month
extension and addresses funding of predevelopment expenses;
beginning July 15, APCP will pay the City's predevelopment costs
for the remaining term of the ENA; upon approval of an Asset
Management Agreement, APCP is required to reimburse the City for up
to $500,000 of costs incurred during the initial period; the
remaining balance will be paid upon execution of the DDA; APCP will
provide a $150,000 deposit for predevelopment costs; staff
recommends approval of the ENA.
Mayor /Chair Appezzato noted staff would try to complete
negotiations prior to the 24 -month term.
Councilmember /Authority Member /Commissioner Johnson moved approval
of the staff recommendation.
Vice Mayor /Authority Member /Commissioner DeWitt seconded the
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January 15, 2002
motion.
Under discussion, Mayor /Chair Appezzato stated approval of the ENA
is the first step; the next steps are: a Property Management
Agreement, an Asset Management Agreement and a Development
Agreement; there will be many public meetings during the next two
years; encouraged everyone to be involved in the development of
one -third of the City.
Councilmember /Authority Member /Commissioner Daysog stated the two -
year time frame seems long; inquired whether the time frame could
be shortened.
The Development Services Director responded all required documents
and proper California Environmental Quality Act environmental
reviews could be completed within a shorter time frame; staff was
attempting to present a realistic time frame given all variables,
including negotiations with the Navy.
Councilmember /Authority Member /Commissioner Daysog inquired who can
exercise the option to extend the Agreement an additional 12 months
at the end of the 24 -month period.
The Development Services Director responded that as long as
conditions are met, the developer can exercise the option.
Councilmember /Authority Member /Commissioner Johnson noted standards
must be met.
Councilmember /Authority Member /Commissioner Daysog inquired whether
extension is not at the sole discretion of the developer, to which
the Development Services Director responded in the affirmative.
Councilmember /Authority Member /Commissioner Daysog inquired whether
Council could vote to discontinue the Agreement at the end of 24
months.
The City Attorney /Legal Counsel stated the ENA allows discussion to
result in preparation of three additional documents: the Property
Management Agreement, Asset Management Agreement and DDA transfer;
the 24 -month provision is an extremely short, expedited time frame;
staff and the other parties will give the ENA their full attention.
Councilmember /Authority Member /Commissioner Daysog stated APCP's
original proposal indicated an ENA could be reached in 3 months;
getting through the ENA in an expeditious manner was a selling
point; noted the 1200 acres [to be developed] is more land than the
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Fleet Industrial Supply Center and East Housing, which took two -
years.
Mayor /Chair Appezzato stated it is better to have a 24 -month period
and try to complete the process in 9 months.
The City Attorney /Legal Counsel stated the process has outside
limits and areas of default; 24 months is an expedited time frame;
staff has committed to try to complete it earlier; a number of
requirements must be met during the time frame; Catellus took many
years for a property 250 of the size of the property under
consideration; in 24 months, the goal is to enter into a term sheet
to establish the various items upon which the DDA will be based;
assuming said document is in place, the City Manager will make an
administrative decision to go forward; the exclusive negotiating
time is the time which has been committed to literally negotiate
exclusively with the developer; the project is the biggest in the
history of the City of Alameda; the City and APCP are working
together to come up with a proposal for development; many things
are involved, such as price and terms; consideration must be given
to the fact that the closed military establishment has significant
issues: transfer, redevelopment, environmental review, litigation
potential, housing problems, General Plan amendments, and labor
negotiations; the first 24 -month period is an outside time frame
with automatic extension for another 12 months if there is a term
sheet.
Councilmember /Authority Member /Commissioner Daysog inquired whether
the City Council would vote to extend the Agreement the extra 12
months or whether the developer has discretion.
The Development Services Director responded Section 2.2 of the ENA
states: the City Manager /Executive Director shall, at the written
request of the developer, approve an extension of the term for a
period of one year, which approval shall be conditioned upon the
following: 1) no event of default, with the respect to the
developer, exists and remains uncured; and 2) the developer and
Alameda negotiators have agreed upon a term sheet describing
significant elements of a DDA for purposes of finalizing the draft
DDA for submittal to the Alameda Public Improvement Commission.
Councilmember /Authority Member /Commissioner Johnson stated that she
was impressed with the 24 -month time frame; the term sheet is not
insignificant; it is the framework for the formal agreement;
renewal is not automatic.
Councilmember /Authority Member /Commissioner Kerr stated the Asset
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Management Agreement is targeted for July, 2002; APCP's response
included aggressive wording on Asset Management, which is one
reason APCP was chosen; hopefully, the target date will be
achieved.
Councilmember /Authority Member /Commissioner Daysog stated although
he did not vote for APCP, he will work to move forward in a
positive way; the process is being started tonight.
Vice Mayor /Authority Member /Commissioner DeWitt stated lots of work
will be done during the two -year period; the developer will be
paying for work during the negotiation period.
On the call for the question, the motion carried by unanimous voice
vote - 5.
Stuart Lichten, APCP, presented a check in the amount of $150,000
to the Council/ Authority /Commission; thanked staff for their hard
work; stated there will be many more hurdles; APCP is just as
excited about the development as it was the first day; the Asset
Management Document will allow APCP to make major investments in
existing buildings; APCP looks forward to delivering more checks to
the City of Alameda and delivering on every promise made in its
development plan.
ADJOURNMENT
There being no further business, Mayor /Chair Appezzato adjourned
the Special Joint Meeting at 7:57 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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and Community Improvement Commission
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