pages: CityCouncil/2020-10-06.pdf, 13
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CityCouncil | 2020-10-06 | 13 | In response to Councilmember Vella's inquiry, the Assistant Community Development Director stated one month will be abated for every year repaid early, with a maximum of three months; if a tenant pays back everything in one year, the tenant will receive three months of abatement. Councilmember Vella inquired the process should a tenant only defer four months of rent; stated the wording is open and unclear. The Assistant Community Development Director stated most tenants need more than three months; tenants have already been given a three months deferral carte blanche with one year to repay. Councilmember Vella inquired whether the program will apply to people repaying the three month deferral. The Assistant Community Development Director responded in the negative; stated the proposal is for Spirits Alley and non-profits; the program has a finite group of people and consists of businesses which have been hit hardest and unable to open from March to October; noted Spirits Alley businesses have not been able to open and are receiving tax bills; the nine month time frame gets tenants to the end of the year. Councilmember Vella inquired whether clarification will be provided should tenants not need the full nine month time period. The Assistant Community Development Director responded a tenant taking three months and repaying within one year would receive one month of abated rent; a tenant taking six months and repaying in two years would receive two months abated rent. The Community Development Director stated it is a pro-rated basis. Councilmember Oddie inquired whether the $1.5 million is the abatement portion of the proposal. The Assistant Community Development Director responded the $1.5 million is the loan and potential abatement; stated the timeline is up to six months; a tenant that applies for $250,000 would enter into a promissory note with the City for $250,000 with benchmarks and criteria; if the requirements are met within 24 months, all or a portion of the note will be abated as negotiated; should a portion of the note be used for abatement, the tenant will repay the remainder on a payment plan. Councilmember Oddie stated that he understands the time period of abatement is only three months over the course of three years; currently Council can approve abating nine months' rent. The Assistant Community Development Director stated six months' rent is being considered. Regular Meeting Alameda City Council 11 October 6, 2020 | CityCouncil/2020-10-06.pdf |