pages: CityCouncil/2015-10-20.pdf, 15
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CityCouncil | 2015-10-20 | 15 | Mr. Ernst stated the cost for Building 91 is $220 per square foot, which exceeds costs for comparables; the investment is very significant. Mayor Spencer questioned $9 million for 41,000 square feet; stated in Alameda homes are selling for $1 million for 2,000 to 3,000 square feet. Mr. Ernst stated the two are very different; price is a function of the rents. In response to Mayor Spencer's inquiry regarding Building 9, Mr. Ernst stated a second floor would be added to the building, which is a significant capital improvement. Mayor Spencer requested staff to provide two different tables on the cost per square footage to purchase. Councilmember Oddie stated that Council gave direction to staff on negotiating the option to purchase. The Chief Operations Officer - Alameda Point stated staff believes given the condition of the properties, the buildings are in market range; the Building 9 purchase price of $5.5 million equates to $65 per square foot; brokers advise the amount is the high end range for a class C warehouse building in that condition; Building 91 equates to $75 per square foot; given the condition of the buildings, the infrastructure burden and the amount of investment required to bring up code, staff believes the amount is market value. Vice Mayor Matarrese moved approval of authorizing the City Manager to execute the documents; stated investors are ready to make these buildings usable, inhabitants are ready to lease them; buildings will be removed from the City's ownership and on to the tax poll and will grow a commercial sector which has had problems growing in last 30 years; moving on the properties is critical. Councilmember Ezzy Ashcraft second the motion. Under discussion, Councilmember Oddie stated two separate motions are needed. Vice Mayor Matarrese clarified the motion is approval of the first item [introduction of the ordinance approving a Lease and authorizing the City Manager to execute documents necessary to implement the terms of a 10-year lease with 707 West Tower Avenue, LLC, a California Limited Liability Company, for Building 9 located at 707 West Tower Avenue at Alameda Point]. Councilmember Ezzy Ashcraft stated Building 9 was last occupied in 2003; there is a cost to the City to have buildings vacant; she would like to see more of a retail component; concurs with the Vice Mayor it is a great opportunity and urged movement on the project. Regular Meeting Alameda City Council 15 October 20, 2015 | CityCouncil/2015-10-20.pdf |