Speaker 0: California limited liability company for Building 91, located at 651 West Tower Avenue at Alameda Point.
Speaker 1: All right. So go ahead.
Speaker 0: Okay.
Speaker 4: Good evening, mayor and city council members. I'm Ninette Mercado in the Community Development Department and Base Reuse. So tonight, you have in front of you two leases that as a mayor reported, we're going to present together four buildings, nine and 91. I'm the basics of the leases are in your staff report but basically these are two buildings nine that's been vacant for a while. It's formerly a document storage facility and it's been vacant for many years. And the 91, which currently has a tenant, but it's been a building. I don't know if many of you recall it was originally in the homeless accommodation and it was returned back to the city and we've had some problems leasing the building, but we have a tenant in there now. And so the repurposing of these two buildings for what we call a food and beverage incubator, accelerator project we think is very exciting. It is a niche that much needed at Alameda Point. And together they're going to they will be introducing what essentially is Alameda entree into the slow food movement, which is the move that creation of or the production of food from locally grown products. And as as our country has gotten more green, we've gotten the consumers have also gotten more selective on how they eat. And so these these makers are local local makers who will make products and have an opportunity to grow their products. It's essentially the old world, growing your food and bringing it to the marketplace and having people buy it and then creating your own market and and and making more and more and more. And so I am I think that it's an opportunity for entrepreneurial ism. It's a big word to say late in the evening. And it is it's an exciting project. In addition to these individual makers that the developer envisions to creating public spaces where people can come and eat. Building 91 will be essentially a big, huge makerspace where you will have the country's first more organic, mold growing organization. And there's going to be a granary where flour is green and milled and whatever that means, I don't know. But it will be an opportunity for people to see these processes take place by their food. Sit down. And it is really the beginning steps of of marrying maker space and place making for people to come eat. And it's we believe it's a perfect complement to our Spirits Alley, which is much needed for food for that area because people come and they drink wine and beer and distiller distilled drinks and they need something to eat. And so we think that this this makerspace food and beverage space will be perfect. And the applicant is here. I want to just say one more thing that the the name of the entity, 707 West Tower, 631 West Tower are created, but the developer of the space is S.M. Sorry, I'm Ernst, and we think that they're a great team member for us because they've done projects around the Bay Area and in Alameda and around the Bay Area that have been very successful. Including in Alameda, the Peet's Coffee Roasting Facility on the Harbor Bay Business Park. And in the region, they have Pixar Animation Studios, Universal University Circle and Palo Alto. And since the beginning of this company, they've been titled Acquired and or developed over 8 million square feet throughout the Bay Area. So we think that they're more than qualified to undertake these two buildings that that have been a challenge for our for leasing and take it to the next level where they were going to have new tenants, new life and bring a vibrancy to Alameda point that we think is a perfect complement to the town center.
Speaker 1: Speaking of, can you speak to so that the community is aware of what you're talking about the this the diagram but buildings they are.
Speaker 4: Sure. So as you turn from around the seaplane lagoon and Palladium, which is a nice landmark for people who come on to the base, these are the two large buildings across the street from Palladium. 91 is on the corner and nine is directly adjacent to it. So it's those two buildings that are highlighted there. That's nine. And previously you had 91 on the screen.
Speaker 1: Thank you. And both of these leases also contain options to purchase.
Speaker 4: They do. Nine has an option to purchase. It's a 4.2 acre space and the option to purchase is 5.5 million. That's the purchase price. Previous for formerly, we had said that we thought that the fair share infrastructure price for the land is $1 million per acre. That calculation is $1.3 million per acre. So as we have gotten more purchase options in hand, we've kind of inched our price up. Building 91 is a 2.2 acre site and we're getting a $3 million purchase price for that, and that is $1.36 million per acre. So again, nine was in negotiation before 91. So even between those two buildings, the purchase price went up.
Speaker 1: And can you describe how the option to purchase gets exercised?
Speaker 4: Sure. So in the current state, the city cannot transfer ownership to the property right now because we don't have parcel maps. So the city is undertaking a parcel map process. We are feverishly doing it, by the way, in order to get everything in place that we need all the entitlement and easements and things like that. And so that has to go to the planning board and I believe it here for approval. But so it's we're going through the internal processes now. It's going to our development review team this week. So once we create the pass a legal parcel, then we are able to offer it to the tenant for purchase. But until that process happens, we cannot sell anything.
Speaker 1: But that is part of the lease. Yes. So it's not in the title of the document that it includes an option to purchase. And I and not every lease does include an option to purchase. So I would request that when we do an option to purchase within the body of a lease, that that be part of the title and it actually be made very clear that that's that we are speaking to both a lease as well as an option to purchase. Thank you.
Speaker 4: All right. I would like to have that applicant come and speak if they'd like for a few minutes to talk about directly about their project.
Speaker 1: All right. Thank you. And do you know if those are any of the people that turned in slips? We have.
Speaker 4: No, they did not.
Speaker 1: They did not.
Speaker 6: Yeah. Oh.
Speaker 4: Yes, one did. Yeah. So, Ron Silverstein.
Speaker 1: They all did. So. So let's go through our speaker slips. And if there's anyone left, then we can go to that person. All right, perfect. So we have Ron Silberstein or Stephen? I'm not sure. Alexander, Con Harvey Sing and Michael McDonough. And if there's anyone else on here that wants to speak, you can be after them. So come on up. Let's do it.
Speaker 6: So the message.
Speaker 1: If you want to go in a different order, Joe, if you want to go first, go ahead. Thank you.
Speaker 7: Good evening, counsel. I'm Joe Ernst with SRM Ernst Development and this is my partner Harv Singh. And we wanted to share with you a little bit more detail about our project for the Buildings 1991. You know, as Ninette said, you know, we are seeing tremendous growth in the.
Speaker 5: Local food movement.
Speaker 7: You know, which really comes down to people want to know where their food comes from. There is a greater appreciation for that sense of it being made locally. And as a result of that, you know, we're seeing broader distribution for local food. You know, at once it was, you know, the domain of specialty food stores and places like Whole Foods. And, you know, more recently, we're seeing food services markets, your standard grocers getting into the local organic food scene. One of the challenges for these food companies are two of the biggest challenges they face are production and capital. And in order to attract capital, they need to be able to scale. But they they can't scale without the proper facilities. And, you know, they raised so much capital. They need the capital for their operations. And it's unfortunate when they have to pour so much of their capital into building their own facilities, because these these projects don't exist in our market today. So we are looking at a band that is 2000 square feet on up to 20,000 square feet. You know, we see a lot of shared kitchen space in our market. We see small, dedicated one off private kitchens or, you know, 5 to 10 private kitchens, but nothing at scale that can bring deliver this at a competitive cost. These. And then on the other end of the spectrum, obviously large industrial kitchens. So, you know, it's again, this middle urban local food producer. And what's unique about this project is we're not just offering facilities. This is not just a real estate project. We're going to be providing services through an incubator and an accelerator. There's going to be opportunity to get into bring these food companies into different channels like Whole Foods, for instance. We will be able to offer capital to these companies and retail opportunities, both at the place of location and through our relationship with city. We are going to be offering what we call plug and play ready, license, ready space again so these companies can come in, plug in their equipment and do their business, focus on developing their product and growing their business and not pouring all their capital and time into building space. To date, before we've had the lease approved here, we've already toured nearly 25 companies through the buildings. Over 80% of those we are either have under LOI or have a proposal we are negotiating or clearly have expressed a desire to get a proposal and we have a good number, another 30. You know, our plan is to have about 30 to 45 companies in this project. And we have procured capital to invest upwards of about 40 million between the two buildings. So very significant capital investment.
Speaker 1: Can you give us a breakdown between the two?
Speaker 7: Building 91 will be about 9 million and the balance in Building nine. You know, again, this May.
Speaker 1: 31 million on the other building.
Speaker 7: That's right. You know, so again, this team here, I think between, you know, what we bring is that we bring a knowledge of Alameda point through our work with city understanding utility infrastructures, understanding the challenges of some of these buildings. We bring development capability, we bring food company development experience. And I'll let Harv talk about that. And with that, you know, a lot of market knowledge. And again, what I think really makes this unique and what I think really makes this a valuable offering to this market is half my partner on this project and would like to let him offer his words.
Speaker 6: I just wanna come and use the microphone. Thank you. I hear you.
Speaker 5: I just wanted to take a few minutes just to express, like, what a beautiful concept this is. And in the last 15 years of being involved in the local food movement, from running farmer's markets to helping local growers and local food makers grow their businesses, in the last ten years, working as a local food forager for a Whole Foods Market, everything is really kind of come to this point. In the last two years, I've been seriously looking at what is needed to grow this movement to the next level, and having adequate, affordable product production facilities for entrepreneurs to work is at the top of the list. Having access to market, having access to professional resources, and how to teach these folks how to grow their businesses to the next level. And that's why we've created a company called Forager Ventures, which is a small food business incubator accelerator program that's going to help to scale these businesses to the next level with Whole Foods Market as a retail partner. When you look at these two buildings together, nine and 91, what entrepreneurs want is a space to collaborate, to work together and to create a sense of community. And we have that opportunity to do this. It's going to happen and we want to be the team to do it. And I think I believe I have the experience and the network and the relationships to make this happen. I've got 15 years in the industry, last ten years with Whole Foods Market, great relationships with partners like Food Craft Institute, Eat Real San Francisco Street Food Festival Cassina are partners a who's who of the local food industry. We're really excited about this vision. I live in Alameda. We wanted to do this in Alameda. We think the location is perfect. We think the buildings are really ideal and suitable to do this.
Speaker 1: All right. So the nine other quick comments and then I'd like to call the other speakers. Or you're finished. All right. All right. Thank you. The other speakers. Ron Silverstein. Alexandra. Michael. Thank you.
Speaker 0: Good evening, Madam Mayor and city council members. I'm Alexandra Cohen from Jeff Cohen Sellers. I thank you for taking letting me take the time to speak. I want to move to Alameda. My husband would have been here, but he has to get up at 4:00 in the morning to drive to point Richmond right now where we're making our wine. I don't want to make it there. I want to make it right out there. So you have Ron Silverstein, you have Joe Ernst, you have Harvard saying they've put together $40 million worth of. Investors that want to invest in Alameda. Let's move this forward and do this. Let's have the tourism. I'm still dreaming big. Remember? I'm still dreaming big about Alameda. And I just think it's a great thing, and I hope that you approve it. Thank you.
Speaker 5: Good evening, council members and Madame Mayor. My name is Ron Silverstein. I'm an Alameda resident as well. I think we have a lot of them here tonight. And I'm respectfully requesting approval of the leases with option.
Speaker 7: To buy for 991.
Speaker 5: Briefly, my background. I am the owner of Thirsty Bear Brewing Company, which is San Francisco's first and only organic brewery. It's also the oldest brewpub in San Francisco and the founding member of the San Francisco Brewers Guild, which we're probably best known for San Francisco Beer Week. And I will be leasing 20,000 square feet in Building 91. And now what I want to do is talk to you very briefly. I hope I don't run out of time about my business. Why in Alameda and why with Joe Ernst? What we're going to do is California's first malting facility, California craft maltings. Now, malt, just real briefly, is the single most the largest ingredient in beer is to beer. What grapes are to wine? Even though we're going to be doing small batch malting, this is a big thing. There's only 27 small craft malt houses in the United States, although there's 31.
Speaker 7: In planning right now.
Speaker 5: Or in construction. Our audience is the over 150 craft breweries that are right.
Speaker 7: Here in the Bay Area.
Speaker 5: There's over 600 in California, but there's 150 right here in the Bay Area. And they're all using.
Speaker 7: Malt from Canada and England and Germany and everywhere.
Speaker 5: Else. I have my business partner is another brewer in San Francisco. He wanted to be in San Francisco. I wanted to be in Alameda. I wanted to be in Alameda. I want to be with my colleagues and friends on spirits highly like Roger Faction or Lance at St George's. And back in June of 2014, met with Jennifer, Art and Annette. And we originally was interested in a building. I couldn't get a long enough term lease, but then Annette showed us, showed me building.
Speaker 7: 91 and I really wanted that building.
Speaker 5: I knew I couldn't develop my it myself. But I learned of Joe's vision for Building Nine and the and the Maker Project, the Artisan Food Project that he was deciding to do there. He's a Alameda resident, and I'll see him at a little house cafe, and his vision of the local artisan food production just fits in perfectly with what we want to do. His ideas are the accelerator, the incubator and the nurturing these artisan food movements half, as you know, local food for your Whole Foods. No one knows more local food producers than he in this world. One thing that attracts me so much is he's in this for the vision of it. He's here for the contribution he can make to Alameda. He more as a legacy project than a long term investment. May I speak just. Yes. Recently, he is investing $40 million in the two projects, 9 million in.
Speaker 7: The building I want to be.
Speaker 5: In. And he's building to suit for all the tenants. We have shared values. We're meeting next week with sewing. We want to install water. Recycle recycling system for the whole building could save enormous quantities of water. I've worked, I've looked around, I've worked with other attempted to work with other developers, landlords. And no one has the commitment to the quality and success of his tenants as he does. We're in discussions for the other half of Building 91 with colleague breweries. Someone wants to do a brewery incubator there. There's other breweries that are interested. It could be a really exciting, dynamic situation coming to close here. But my investment in this, I've invested a couple hundred thousand dollars so far, raised the money, invested it a most of it contracting local farmers to grow to to pay them a premium to grow malting quality barley. And they're super excited about this, not just because it's another premium product they can grow, but it's a drought resistant product it can grow. We dry farmed barley last year that was our best barley that we grew it. And this kind of vision, again, with expanding the circle of who we work with from farmer to producer, will take that barley will turn it into malt. I have SBA financing for the entire project and I'm just really excited to be part of this campus of Building nine and 91 next to my colleagues on Spirit's Alley. And I'm excited to be part of this visionary project that will help expand and. Bring new industry to Alameda. So I thank you very much.
Speaker 1: Thank you. All right. Go ahead. Michael McDonough.
Speaker 5: Good evening.
Speaker 1: Sorry that he's our last speaker on this item. Unless you want to announce that. Thank you. Go ahead now.
Speaker 5: Good evening, everyone. I'm Michael McDonough, president of the Alameda Chamber of Commerce. Wow. I can't say more than these passionate people. This is exciting and visionary is is the truth. We have a trusted developer right here in Alameda putting $40 million into two of our buildings out there that badly need that investment. And it sounds like it's a done deal except for you guys approval and hopefully that's coming. $40 million, I think, is closer to $45 million by the end of it. And we already have a lot of tenants lined up. It really is a project that that answers the maker's vision that we have it for that area out there. It's not your typical L.A. style businesses that are coming in. This is truly wonderful. What what I'm hearing about there and with the tenants lined up, most of them Alameda residents already. And I know that that we all have known Joe for a while and he has been a trusted developer right here in Alameda and has proven his worth on parcels bigger than these two buildings and say they all put together out here at the Harbor Bay. And we've all enjoyed the work that he's put in there. So if there's a question about whether or not he should be trusted with two more buildings, in addition to, say, they, I think his experience and his track record is well worth giving him that opportunity. And it sounds like the investments are in place, the tenants are in place, the excitement is there. It's a wonderful complement to the other plans that are out there for Site A and as well as the other businesses out there. I know of another maker out there and of its Alameda craft soda that is out of sight and outside out at the base there. It is just a wonderful opportunity to add to some of the success as we've already seen in that area. And I would encourage you to move forward with this with a trusted developer. All the plans are in place. It's just up to you guys now to approve it. Thank you.
Speaker 1: Thank you. All right. I have questions. And I'd like to start when I look at these two. This is a property of based upon what the speakers said of item 60. The my concern goes to the purchase price on these two as opposed to the lease. So I personally don't have a problem with the lease part. I do have serious problem with the purchase part. First of all, my one issue I have is I don't think it was really noticed as an option to purchase. And I think that we do have limited buildings out there. When you're talking about purchasing a building, as much as this is being shared is what the current purpose of when someone actually buys a building. They it's it's very different in regards to what they can and can't do with it as long as it's under a broader zoning. So there's other things that can happen when a developer purchases a building. But in regards to the price of the purchase, six D Building nine based upon the report is 81,000 square feet on 4.2 acres of property. And I think this would have been nice to have another visual and if you at so if you're talking 81,000 square feet 4.2 acres and the purchase price is 5.5 million and based on the comments from the speakers, there's an investment of 9 million or approximately 14.5 million of work to be done or the total purchase, if I include the investment. So $14.5 million for 81,000 square feet on 4.2 acres, which. I. Which to me is questionable in regards to that as the purchase price is separate from a lease. And I'm fortunate I didn't have enough time to run the. The price per square foot of what that turns out to be. But I think it's significantly less than what housing is in this town right now, whereas 660, that one is is very different. That one is 41,000 square feet, 2.2 acres, a purchase price of 3 million, however, 31 million investment. So that's approximately $1,000,000 per square foot, which is significantly higher if that's based on those numbers. And and I'm happy to have you come and describe the different numbers, but. So I think there needs to be. So so if you want to go ahead and speak to the purchase price, the investment.
Speaker 7: So Building nine is currently an 80,000 square foot footprint. That is the building we're going to be investing about 30. It's actually about 32 to $33 million in. So the bigger building is getting the higher investment, the smaller building, building 41, 91, which is 41,000 square feet. We have about a total investment in that building of 9 million.
Speaker 1: Okay. So it's still. Okay, so then so then it's the flip. So then my question would go to six E if the investment is 12 million for 41,000 square feet. And actually, I'm not sure. The other one may also be questionable because then. Without having the numbers. I think that this presentation needs to include I'm happy to include the investment part, if that's what it takes to build the building or to get it operable. But I think we need to have some analysis of what the cost per square foot is to purchase not just the lease and actual those. I'm sorry. Yes, go ahead.
Speaker 7: All right. So the all in cost for building 91 with our investment will be about $220 per square foot. That way exceeds the comps for comparable buildings in this market. You have some, you know, brokers in the audience who can talk to you at length about that. But that is a very significant investment which reflects.
Speaker 1: And that's for building 91. That's for building what one? And is that the 3 million plus 31 million then.
Speaker 7: That's the three. No, that's the 3 million plus an additional 6 million that will put in to rehabbing the building and building out the tenants spaces. All these buildings need all new, all new electrical, all new plumbing. They need their sanitary sewer systems upgraded. They need all new sprinkler system upgrades. Building 91 doesn't even have sprinklers. They need seismic upgrades before.
Speaker 1: But you're talking about $9 million for 41,000 square feet, correct? Is that correct? That's correct. And okay. So $9 million for 41,000 square feet. I think we have homes being sold right now in this town, $1 million for, I'd say 2000 square feet or 3000 square feet.
Speaker 7: But so but it's a very different animal amenity. It's a function of the rents.
Speaker 1: So it is. But still, the breakdown that I think needs to be decided if we're talking about an option to purchase, which is very different to me than a lease. And I think they do require different analysis. And then so your numbers on 16, what did you come up with for your price per square foot on that
Speaker 7: ? Well, with the $35 million or $33 million, we will be adding a second floor in that building because of its clear height, which is a significant capital improvement to the building.
Speaker 1: Sorry. Adding a second floor to the building?
Speaker 5: Yes.
Speaker 1: Higher than it currently exists.
Speaker 7: Either one.
Speaker 1: So you're adding.
Speaker 6: I'm not raising the rent.
Speaker 1: Guidelines.
Speaker 7: So that'll be, you know, with our investment will be about $220 a square foot and so comparable. But by the time we get done upgrading these buildings, all new seismic upgrades, all new electrical plumbing systems, gas, we have to bring the buildings don't have gas. We need building 91 needs all new siding on it's weather side doors, windows, interior improvements. Well, we have invested $220 a foot in these buildings, which is a pretty significant investment when you look at comparable.
Speaker 1: Work and staff work on the two different tables of the total cost to purchase per square foot in the meantime, and other councilmembers are asking questions.
Speaker 8: So I have that in front of me. So for.
Speaker 1: Building, is there a way to do it so that we can maybe do it on that board or so that it shows up so that the audience can see what we're talking.
Speaker 6: With?
Speaker 9: I'm confused because yeah, I thought we gave direction to staff on negotiating this this option to purchase amount. So I don't understand why it's at issue now. If we gave direction and you took our direction and you negotiated at least based on that direction.
Speaker 8: Right. And we believe just to get to your question, we believe, given the condition of these properties, that the value that we're selling it to. This Developer four is in the market range for what the value of those buildings are. So for instance and, and I can try to put it up, but I think just it's relatively easy math and you take the building and purchase price for building 94, Building nine is $3 million or is that right?
Speaker 1: That's a 5.5, I think.
Speaker 8: Yeah. The 5.5 million divided by the 80,000, it comes out to $65 a square foot, which is talking to our advisors, our leasing brokers that work for us that is on kind of the high end range of for a Class C building warehouse, kind of industrial building that's within the range of the value of a building in that condition. And then for building 91, that comes out to about $73 a square foot. So on a square foot basis, even more for a building that honestly is actually in worse condition and requires a lot more a lot more investment. So we believe that we're getting market value for these buildings. We also, as our kind of what I care about kind of the most is that we are not getting less for these two buildings combined than the infrastructure burden that they're required to pay in both these cases will be, well, we'll be getting sufficient dollars to cover their fair share of the infrastructure burden as a floor, as a minimum. That doesn't mean we shouldn't try to get more because of the market value for our buildings. But given the condition of these buildings, given the condition, honestly, of the infrastructure and given the amount of investment that is required to bring them up to a use that will be highly utilized and attract jobs and the types of users that they're talking about attracting that creates a catalyst for this whole area. We believe that these are market value for these purchase prices.
Speaker 1: I swear.
Speaker 3: I, I think that the important things that were just stated there about the condition of the buildings. The infrastructure and the fact that commercial is much different than residential, you cannot compare the two. I think we have to move on this now. And I, I am ready to support a motion that authorizes the city manager to execute these documents because, number one. The investors are ready to. To make these buildings usable. Number two, the inhabitants of the buildings are ready to lease them. Number three, these buildings will get off of the city's ownership and onto the tax generating private sector and grow our commercial area. And when we've had in the last 30 years much difficulty in growing the commercial sector in Alameda. So it's really critical that we use this window now.
Speaker 6: Our second that motion and I'd also like to add my comments.
Speaker 3: To to move on the two properties for those two reasons. And I think the infrastructure costs out. These both lie outside of city, but we'll take some advantage of city infrastructure. These will contribute, as was mentioned, to the infrastructure cost that has been burdened on every property at Alameda Point. And they're higher because we're going to need that higher because some properties, especially in the future, will not be able to get what we need. So I believe we have to get this now.
Speaker 1: A member already.
Speaker 9: I think we need to motion. So I don't know if you're going to make one on.
Speaker 5: One or.
Speaker 3: XD.
Speaker 6: XD I move for the the second and 60 and then. So my comments were you you were making a promise I will do it that way.
Speaker 9: To save time. I would say everything that the vice mayor just said. So I'm not going to repeat it.
Speaker 6: And what I would just add to that is that in reading the staff report, you will note that Building Nine was last occupied in 2003. That's 12 years ago. There's a cost to having those vacant, decaying buildings. And what I've heard and what I read in the staff report is this is a movement. It's a healthy movement. It's something that people are embracing. It's another way to bring more people out to alameda point. I hope some of you in in the audience that may be watching at home have made your way out to the pumpkin patch that's added at on the water there now as part of phase zero. But what I thought was great, I think I was out there the first weekend, which was also the first Sunday is they did this cute little court with the food trucks and then there's all the amenities for the kids, the petting zoo and the jumpy house and stuff. But it helped get some people off of the roadway. So instead of leaving the antiques fair that for Sunday the month and everybody heading to the tube, they were heading into the point and enjoying the amenities out there. We'll do even more of this. And something that I have long wanted is more of a retail component. Added Alameda Point. I know we have a lot of manufacturing going on, but our residents and visitors who will come to our town, they'll they'll spend their money if there's retail to buy. So you made me hungry talking about all this great offerings. But I agree with the vice mayor. I think it's a great opportunity and we need to move on it.
Speaker 1: Remember days are.
Speaker 7: Thank you. We have in Building nine and Building 91 two proposals before us that complement the vision for nearby site A as well as complement the nearby successful Spirits Alley already in place. Lady M is nearby as is right speed. With Spirits Alley nearby, as well as Palladium and Right Speed. The projects before us offer strong prospects for kickstarting Alameda Point as an exciting place of small scale artisanal craft manufacturing. In working with local businesses such as J.C. Sellers and a development team who has demonstrated success in other parts of Alameda. I think we have a set of players in whom we have a strong measure of confidence. This is an important point because in the transfer mechanisms we are utilizing tonight. Thus far we have had three projects fall by the wayside. I'm speaking of the two Caruso projects and the West Hollywood Shopping Center project. Base conversion isn't easy knowing that in recent years we. Actually strike that. John Russo set out a vision and ways to implement the vision to get developers and the type of businesses we want. We've got quality folks knocking down our doors in right speed, J.C. Sellers and surround Ernst with the two projects before us tonight. It's time to get going even further. I have deliberately deliberated over the aspects of the business deal and have decided that these are investments worth making. We have people in front of us with local track records that engender confidence, that engender my confidence. We are not getting less for these two buildings. What the infrastructure burdens are in place for these buildings already. That is not tonight. In other words, you bring these markets to you, bring these buildings to market. It's going to require an extensive amount of investment on the part of anyone. So in that we have SRM Ernst, who has demonstrated its success in other parts of town and who is actively involved. Obviously inside a we have a partner and he's bringing along local businesses, many of whom reside here in town. So this is a project worth going for. I think if we contrasted this with the two Caruso projects or with the West Hollywood Shopping Center project, I think we would have to conclude that this is light years so far in terms of the vision and in terms of the capacity that they're bringing to bringing this part of Alameda point forward. I'm satisfied with the with the proposals put out by staff and the recommendation. When we're ready to move forward.
Speaker 6: That was very well said, by the way.
Speaker 1: So I plan to support this. However, I think in the future, when a lease comes to us that includes an option to purchase, it needs to clearly state that. And that there needs to be fiscal analysis within staff's recommendation. That includes the investments by the developers, the history, so that we can see the square footage, what the cost would be to actually use the building and then comparative things like that. I think that that is missing here. And as much as there are negotiations that take place in closed session, I don't I still think it is incumbent upon us to share it with the community as to why these numbers may or may not make sense. So I think in the future, I would I would hope that I think all of that information is included so that it's very clear the costs to purchase that is different. There's a there is significant data here. And on regards to the the lease part, there is next to nothing in regards to analysis for the purchase. But that being said, I do plan to support it in that I and and I appreciate the comments that were made. I think it is a it does complement the spirit Sally that's out there right now. I think we do need more options to for food for the benefit of our community. And. And then and I appreciate that this includes local it will be local jobs and creative jobs, if you will. So I think that part is good. And I actually look forward to having the green part of the business, the compost and all of that that I think will offer healthier choices or healthy choices for food for our community. That being said, I'm going to call the question and there's multiple there's two emotions. Right. So I'm going to write separately. Yes. So for 60, that motion, all those in favor. I passed this unanimously, 60 Minutes.
Speaker 9: But we don't do we have a motion on that? No. I'd like to make a motion to approve item 60 introduction of the ordinance approvingly, so on and so forth.
Speaker 1: Thank you.
Speaker 0: Memory.
Speaker 1: I can remember day socks beginning now. All those in favor I one passage unanimously. Thank you. And now we're going to move forward with that six F.
Speaker 0: Introduction of ordinance, approving a lease and authorizing the city manager to execute documents necessary to implement the terms of a ten year lease with maps and Navigation Company, a Hawaii Corporation for Building 167 located at 1500 and very point at alameda.
Speaker 4: Good evening, mayor and at mercado again. So you have in front of you I'm in the visual shows building 167, which is located in our Tidelands area. So it has a restriction that the building may only be used for a maritime use. And so Madsen Madsen navigation is a ship. It's a ship repair warehouse. There's been lots of conversation over the last few days about a if it's a cargo handling or logistic company, it is not. It is the tenant that's existing in building 23. They are sub tended to West Coast Novelties. They use the the warehouse portion of the building, not the office portion. And what they have in that building are parts for ships. So if a ship needs to go into drydock and they need a new widget, all the widgets are stored in that facility.
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 10-Year Lease with 651 West Tower Avenue, LLC., a California Limited Liability Company, for Building 91 Located at 651 West Tower Avenue at Alameda Point. (Base Reuse 819099)