I know I should be writing about the Housing Element 2015-2023 at the Planning Board tonight, but I don’t want to. So tonight is a Public Review of the Housing Element for 2015 -2023 at the Planning Board tonight if you are interested. That’s sort of the big agenda item. The other agenda item is a presentation on some housing plans at the Del Monte building but there are no documents so it’s not clear what’s going on with that one. I can’t get that excited about anything at the Del Monte building these days because it changes all the damn time.
Anyway, what I did want to write about was the big news about Google owned Makani Power which is going to be signing a pretty sweet lease at Alameda Point for more than 110,000 square feet of additional space. That’s pretty significant because (1) it’s a lot of square footage and (2) it’s Google dammit. The initial lease will be for six years with five three-year renewal options, which could mean that Google as Makani Power will be here for the long haul. Makani Power, in case you didn’t know does research around generating electricity from wind power.
So everything sounds good right? I mean, we’re getting a sort of a Google campus right?
Not so fast because the terms of the deal may not be as great as we all would hope them to be. So it appears that the City is going for visibility over true fiscal neutrality. As in let’s lure this big name tenant in order to bring other tenants because here’s how the deal is structured. Apparently for the first year, rent is waived for Google.
Additionally it appears that some taxes and “tenant expenses” will be waived as well:
Tenant shall be entitled to an abatement of Base Rent and Tenant’s Share of Operating Expenses and Taxes for the first twelve (12) full calendar months of the Term
Perhaps having Google as a tenant is worth its weight in marketing power to the tune of $55K + per year. It’s already received some level of news coverage which should put Alameda Point on some radars. Plus the space Google is leasing is part of a larger hangar and according to the terms of their lease, they have the right to first offer of the other portions of that hangar if and when they come available. Here’s the general area where it will go:
The space marked 11 is where Makani Power will expand into. It’s not clear how many new jobs this expansion will bring, and I’m cautiously optimistic that this will pay in marketing dividends even though the City is essentially bringing in no cash from the deal for the first year.