pages: CityCouncil/2020-10-06.pdf, 14
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CityCouncil | 2020-10-06 | 14 | Councilmember Oddie inquired whether an abatement or deferral is being proposed for the theatre. The Assistant Community Development Director responded staff is initially proposing a deferral; stated the deferral is until 2037 or when the facility is purchased; noted there is a lot of time between now and 2037; stated many are invested in the success of the Alameda Theatre; after the Section 108 loan is paid off in 2027, an abatement might be considered; meeting the immediate need and figuring out the repayment obligation when the timing is imminent is better for the City. The City Manager stated the theatre is an important entity in Alameda and the proposal is an interim approach; possible forgiveness for the theatre might return; complicating factors include tying loans to revenue sources; if the City forgives payments, the City will need to make up the forgiven payments from other sources such as the General Fund. The Assistant Community Development Director stated if the City defaults on the Section 108 loan, the City would no longer receive Community Development Block Grant (CDBG) money from the Federal government; staff has concerns about the theatre paying obligations. The City Manager stated the other complicating factor is many theatres are closing for a period of time in the future; the closure concern also affects Alameda Theatre. Councilmember Oddie stated the theatre anticipated a previous reopening for the 4th of July; expressed support for helping the Alameda Theatre and doing more than proposed, including abating rent; stated there may be an exchange for community benefits. The Assistant Community Development Director stated Council waived the percentage rent payment for this year at $175,000 and for next year; the percentage rent number increases in perpetuity; the City has done a lot to help the theatre; there are concerns about the Section 108 payment. Councilmember Oddie inquired the method for defining tenant related to the $1.5 million. The Assistant Community Development Director responded staff listed criteria; tenants must have over 25 employees, be consistent with the long term plan for Alameda Point and be a sales tax or jobs generator; staff has been specific on eligibility. Councilmember Oddie inquired whether a tenant is defined as a business with a lease agreement approved by Council. Regular Meeting Alameda City Council October 6, 2020 12 | CityCouncil/2020-10-06.pdf |