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18667 | a long time and has discussed, for example, the problem of historic buildings; the building's value is pretty much nil; imposing a PLA on a tenant might be a problem if a new roof is needed; there is agreement that all new construction should be subject to a PLA; backbone infrastructure should be subject to a PLA; a decision needs to be made about a threshold; Berkeley's is $1 million; the trades would like $250,000; backbone infrastructure and new construction projects are going to reach either threshold; urged that the matter be addressed in the next two or three months since staff would be bringing Exclusive Negotiation Agreements (ENAs) to Council pretty soon; stated staff wants to be able to address whether or not the project requires a PLA during negotiations. Councilmember Daysog stated that he suspects the historic district or buildings with negative value would not generate a rent or sale price which would recoup the investment; however, the possibility of a PLA should not be discounted altogether; requested staff to provide an analysis that includes parameters under which a PLA might or might not work. The City Manager stated staff provided a report a year ago which indicated historic buildings are never going to be worth the amount repairs will cost; a private sector deal will not allow the buildings to be redone; when the buildings are leased, the City gives a dollar for dollar rent credit for any tenant repairs; stated that he would provide the report to Councilmember Daysog. Councilmember Chen stated that he supports moving forward with the two prong approach: one PLA specifically for Alameda Point and a second Citywide PLA; the wheel should not be reinvented; the City can pick and choose from existing models to determine what works for Alameda; Berkeley could be the starting point. Mayor Gilmore clarified that she would prefer to move forward on the Alameda Point PLA and park the City projects for a little while; stated the Alameda Point PLA should focus on backbone infrastructure and new construction and the historic district should be carved out; the sticking point is what, if anything, to require of existing tenants. The City Attorney inquired whether Council would like her come back with a policy or try to start to negotiate something with the unions. Vice Mayor Ezzy Ashcraft responded that she wants answers to questions posed in the staff report to allow the Council to craft a policy; stated a sample agreement and categories could be provided when the matter returns. Mayor Gilmore stated the actual policy should be provided which addresses backbone infrastructure and new construction when the matter is brought back. Councilmember Tam stated the City Attorney should work in consultation with the building trades council in developing the language. Special Meeting Alameda City Council 6 September 24, 2013 |