Excerpt:

Exhibits:
Diagram of Building
Lease
Recent Comparable Sales for Building 23 Purchase Price
Ordinance - Revised showing redline
Presentation to Council
Presentation by Natel

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BACKGROUND

Natel Energy, Inc. (Natel) designs and manufactures innovative hydropower systems that generate renewable energy and was founded at Alameda Point in 2009. With funding from the United States Department of Energy and the Small Business Innovation Research Program, Natel is growing and commercializing their invention, thus prompting their expansion and relocation to a new location in Building 23 at Alameda Point (Exhibit 1). Natel proposes to use the premises at Building 23 as office, research and development, and light manufacturing. Together, with existing clean energy companies like Wrightspeed, Google, Saildrone, and Kai Concepts, Natel is creating a niche for the clean tech industry at Alameda Point. Much like Spirit’s Alley, the City greatly welcomes this clean tech cluster that is growing on the base as it is consistent with the long-term vision for Alameda Point in the City’s existing planning documents.

DISCUSSION

Natel previously occupied Building 400A and currently occupies Building 19 at Alameda Point under a license agreement ending in December of this year. At Buildings 400A and 19, Natel quickly grew from 4 to 20 employees. At their new location at Building 23, Natel is expected to expand to approximately 150 employees.

Building 23 consists of approximately 65,000 square feet of rentable space with adjacent parking in front of the premises. The current rent is $29,250 per month. The proposed 10-year lease with Natel for Building 23 requires payment of $35,100 monthly for year one and year two of the term with an escalation for future years (Exhibit 2). The lease contains one 5-year renewal option and the standard insurance, indemnity, assignment and termination clauses the City of Alameda requires in all its leases. Please find below a detailed rent schedule for the 10-year term.