pages: AlamedaReuseandRedevelopmentAuthority/2006-02-01.pdf, 3
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| AlamedaReuseandRedevelopmentAuthority | 2006-02-01 | 3 | Page 3 know that ARRA does not own the property yet. Member Matarrese repeated the notion of ensuring ample time for dealing with Historic properties, having advanced notice for ARRA, Planning, and the public - to understand what's ahead. Member Daysog motioned for approval of this item. The motion was seconded by Member deHaan and passed by the following voice vote: Ayes - 5: Noes - 0; Abstentions - 0 3-B. Recommendation to Approve a 20-year Lease with the Department of Transportation Maritime Administration (MARAD). Nanette Banks, Finance and Administration Manager of DSD, presented the Board with the lease, gave an overview of MARAD, a tenant on the base since 1997, and explained that the lease negotiations have been going on since May 2002. The lease being presented included two components: the lease combines the MARAD warehouse and pier uses. In addition to generating, under this new lease, a proposed $1.8 M in the first two years with 3% increases, MARAD is the largest electricity user in Alameda and responsible corporate citizens. They' ve already spent $1M on dredging, an ARRA obligation, but MARAD put the money up front. Chair Johnson discussed security fencing, possibilities of reconfiguring least intrusive manner. Member deHaan asked whether MARAD discussed possibilities of shouldering relocation of Hornet and the different scenarios regarding the Hornet's location. Ms Banks replied that MARAD couldn't make an initial investment and it is an obligation of ARRA, but that the 3% increase in rent should pay for whatever decision is made. Member deHaan stated that MARAD should strive to find dollars to relocate the Hornet, since it's to their benefit. Chair Johnson suggested that MARAD may have better access to homeland security money. Under the new lease, gross lease revenue for the first 2 years is 1.8M per year. Net is $800,000 to ARRA Chair Johnson requested a copy of pro forma. She also emphasized an important attachment - Exhibit H - which outlines ARRA's obligations under the lease. Ms. Banks explained that those obligations were negotiated down from the standard lease. Member deHaan stated that MARAD is one of the best tenants at Alameda Point, but is concerned about the 20 year cost to maintain the operation, and that they're not an asset for the ambience of the development. Member Matarrese doesn't have a problem with MARAD being here, recognizing that it's a multiple-use development; there is some industrial and commercial use. Chair Johnson expressed concern about a provision, in the MARAD lease, relating to Trident. She questioned why they were intertwined, and why there is not separate, employer liability insurance. Terri Highsmith, Assistant City Attorney, explained that insurance is something that MARAD and the Federal government can't get and it's in our interest to have this insurance in place. | AlamedaReuseandRedevelopmentAuthority/2006-02-01.pdf |