pages: CityCouncil/2020-10-06.pdf, 11
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2020-10-06 | 11 | The Assistant Community Development Director responded the fund balance will be okay even if all tenants defaulted; stated the amount is $1.5 million out of a $14 million portfolio. The City Manager stated the Fund balance is used for a variety of different things at Alameda Point; should $1.5 million in loans be defaulted, the fund will be okay; staff is attempting to save Alameda Point businesses and help them succeed in moving forward; proposals will preserve businesses at Alameda Point to help ensure long-term revenues; the loan program is not intended to provide assistance only; it will also provide assistance to sustain through the COVID-19 crisis for the long-term; expenditures will need to be readjusted should the loans be defaulted. Councilmember Vella inquired whether there will be a bigger problem if an anchor tenant defaults, to which the City Manager responded in the affirmative. The Assistant Community Development Director stated the prior proposal for the loan conversion program negotiated promissory notes for tenants, which would be cross defaulted with leases; should a default occur, the lease defaults and recouping of funds could occur from security deposits. The Community Development Director stated the $1.5 million allocation request is possible to be loan forgiveness; the potential for default is related to the nine months of deferred rent for Spirits Alley and non-profit businesses being given three years to repay loans. The Assistant Community Development Director stated there is a chance the entire loan program will not be granted; a tenant could default in the loan conversion program; being part of the loan conversion program does not equate receiving a grant. Councilmember Vella requested clarification whether the Council decision is not related to loan conversion but the additional $1.5 million and 9 months of deferral. The Assistant Community Development Director responded in the negative; stated there are three components; the $1.5 million is specifically for the loan conversion program, which allows the City Manager to negotiate how much to grant to each tenant. Councilmember Vella inquired whether the proposal is in addition to the authority previously provided by Council, which was up to a certain amount. The Assistant Community Development Director responded the authority provided was not clear to staff; stated grant awards have not been provided; staff was unclear on the funding amount; staff is recommending the $1.5 million in funding. The Community Development Director stated the matter does request authority in addition to the prior authority given by Council to the City Manager for Citywide activities; the $1.5 million is additional. Regular Meeting Alameda City Council 9 October 6, 2020 | CityCouncil/2020-10-06.pdf |