Blogging Bayport Alameda

October 14, 2019

Terms of engagement

Filed under: Alameda — Lauren Do @ 6:04 am

I don’t know if the terms were made more generous after the Innovation Hall boosters started ragging on the City and City Council but this lease being offered seems entirely reasonable for the proposed business model and the space.  On the agenda for tomorrow night’s City Council meeting:

The proposed lease term is for 33 years, with one option to renew for an additional 33 years. For the first 33 years, rent will be fully abated to account for the capital improvements that need to be made to the buildings and the substantial cost of such improvements. “Starting 48 months after commencement of operations, the tenant must pay a fee on for-profit special events, in the amount of 2 percent of gross revenue generated from for-profit special events, after the first $300,000 (REVISED) earned.”

All capital improvement and construction projects are subject to prevailing wage and compliance relevant legal requirements, and the tenant must endeavor to negotiate an agreement to ensure labor peace prior to commencement of construction. Should the extension option be exercised by tenant, then starting in year 34, rent will equal two percent of the organization’s gross revenue, minus any income taxes paid by the tenant.

Also there are some reasonable community benefit benchmarks which must be met as well, which shouldn’t be difficult to accomplish:

Tenant is required to meet the following Community Benefit Benchmarks over the course of the lease term:

  • A minimum of 200 youths (under 18) per year will participate in recurring course offerings.
  • A minimum of 100 adults (18 and older) per year will participate in recurring course offerings.
  • CIH will hold at least 10 community events per year with discounts available to Alameda residents for each event.
  • CIH will hold at least 1 open house per year (free entry to learn about programs and events).
  • CIH classes will offer at least 5 different course offerings for youths per year.
  • CIH hours of operation for non-profit activities will be an average of 30 hours/week over at least 5 days/week.
  • 10% discount on applicable fees for up to 36 events per year for Alameda community-based organizations and public entities (e.g., AUSD).
  • 10% discount on applicable fees for Alameda residents.

Because one the worst things that could happen to this public building is to become a glorified wedding hall churning out event after event essentially getting free rent and the facility being closed to the public because of the need to recoup the $6.6 million investment.

 

4 Comments »

  1. After watching the video and going to their website I still don’t know what they are going to do….does the Council? Did they meet with AUSD? Are any actual teachers involved? Has this same group done this before? Where? And a 33 year lease? What is opening day? Are they adequately capitalized? What bank? This council will saddle many subsequent administrations with a potential albatross.

    Comment by Concerned — October 14, 2019 @ 8:50 am

    • What does AUSD and teachers have to do with this at all?

      Comment by frank — October 14, 2019 @ 5:21 pm

      • Probably because one of the requirements is to work with youth in the City. It doesn’t appear that any of the educational projects have brought any AUSD staff in to consult even though there are a lot of people who are attached (at least on the website) to this project. An educational program for kids that doesn’t sync up with AUSD sounds strange.

        Comment by Lauren Do — October 16, 2019 @ 5:34 am

        • I know there were early discussions with AUSD Sup Sean McP, and I believe conceptual discussion with the HS principals. Without securing the lease and getting the funding, there is not a whole lot the schools could take the time to work on, they’ve got plenty of things to work on for this year.
          Presentations I attended had the outline of what they hoped to do, including broadcast.

          Comment by Ron Mooney — October 16, 2019 @ 7:39 am


RSS feed for comments on this post.

Say what you want

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog at WordPress.com.