pages: CityCouncil/2019-10-15.pdf, 6
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CityCouncil | 2019-10-15 | 6 | many delays; the timeline to work out the PLA details are unknown; expressed support for the lease to move forward rapidly with the amendment language. Councilmember Oddie requested staff to explain the property negotiation processes. The City Manager stated the process started prior to his arrival; the City Council has final approval based on the Charter and ordinances; leases require a super majority of 4 affirmative votes; the process is unique in that there was a Request for Qualifications (RFQ) process. The Assistant Community Development Director stated staff spent time negotiating a Letter of Intent (LOI); the applicant used the signed LOI to begin fundraising without a lease; lease negotiations take time and the shift from the LOI to the lease makes the terms real; delays were due to creating acceptable language; alternate rent structures have been created. The City Manager stated the RFQ requested proposers to be open to both short and long term leases; the term of the proposed lease is a lengthy commitment by the City which brings other concerns. The City Attorney stated the Council has the ultimate authority to enter into any lease; Council will give direction to staff related to important terms desired; the RFQ does not bind Council to any term or applicant. Councilmember Oddie stated there has been no agreement; the agreement requires a Council vote; there is a misconception that needs to be changed; requested clarification of the risk to the City for City owned property in relation to insurance requirements. Mayor Ezzy Ashcraft stated the project is very exciting; there is also a fiduciary responsibility; the business deal must be solid; expressed concern about the labor issue; discussed the housing crisis in relation to well-paid labor; stated insurance is an important issue; increasing insurance limits have been discussed by staff from the beginning; expressed concern for higher insurance limits not being affordable; stated the iconic building has specific needs and the risks need to be protected. The City Attorney stated the City and applicant have had many conversations related to insurance provisions; outlined the current proposed lease insurance requirements; stated there has been a wide range of coverage limits. Mayor Ezzy Ashcraft inquired the changes year to year. The City Attorney responded certain provisions have a five year market rate adjustment; stated only one provision allows for a Consumer Price Index (CPI) adjustment; staff and the applicant have discussed increasing coverage to improvement limits. Regular Meeting Alameda City Council 4 October 15, 2019 | CityCouncil/2019-10-15.pdf |