Exhibits:

1. Map of Conveyance Phases

2. Map of Phase 3A Parcel on Site A Development Plan

3. Draft Final Finding of Suitability of Transfer for Phase 3A Conveyance

4. City of Alameda Marsh Crust Ordinance

5. Package of Documents to Be Executed and Recorded during Phase 3A Conveyance Closing

Adoption of Resolution Authorizing the City Manager to Accept, on Behalf of the City, Certain Surplus Federal Property, and to Accept, Execute, and Record Conveyance Documents in Substantial Conformance with Certain Phase 3A Property and Conveyance Documents from the United States of America, Acting by and through the Department of the Navy, to Implement the Economic Development Conveyance Agreement for the Former Naval Air Station, Alameda (Phase 3A Alameda Point Conveyance). [Requires Four Affirmative Votes] (Base Reuse 819099)

To: Honorable Mayor and Members of the City Council

From: Jill Keimach, City Manager

Re: Adopt a Resolution Authorizing the City Manager to Accept, on Behalf of the City, Certain Surplus Federal Property, and to Accept, Execute, and Record Conveyance Documents in Substantial Conformance with Certain Phase 3A Property and Conveyance Documents from the United States of America, Acting by and through the Department of the Navy, to Implement the Economic Development Conveyance Agreement for the Former Naval Air Station, Alameda (Phase 3A Alameda Point Conveyance)

BACKGROUND

The Alameda Reuse and Redevelopment Authority (ARRA) and the Department of the Navy (Navy) entered into an Economic Development Conveyance Memorandum of Agreement (EDC MOA) in 2000, which authorized a no-cost conveyance of major portions of the former Naval Air Station Alameda (NAS Alameda) property, including Alameda Point and Bayport, to the ARRA consistent with the NAS Alameda Community Reuse Plan (Reuse Plan) adopted in 1996. The ARRA and Navy entered into Amendment No. 2 to the EDC MOA on January 4, 2012 that re-commits the ARRA and Navy to the Reuse Plan. On February 7, 2012 the City of Alameda accepted a transfer of all of the ARRA’s rights, obligations and assets, including the EDC MOA. The United States Office of Economic Adjustment, on behalf of the Secretary of Defense, recognized the City as the official Local Reuse Authority on March 9, 2012.

Pursuant to these agreements, phase 1 conveyance of approximately 1,379 acres, including 509 acres of land and 870 acres of submerged land of the Alameda Point property was conveyed from the Navy to the City in June 2013 (Phase 1 Conveyance) and a second phase of land was transferred from the Navy to the City in April 2016, consisting of 183 acres (Phase 2 Conveyance) (Exhibit 1). As depicted on Exhibit 1, it is currently anticipated that there will be subsequent future conveyances.

This evening staff is recommending approval of a small conveyance of 2.6 acres from the Navy to the City that will allow the City to complete the transfer of all property within phase 1 of the Site A development to the developer, Alameda Point Partners (Phase 3A Conveyance) (Exhibit 1). This parcel will primarily be under Block 11 within the Site A Development Plan planned for a residential apartment building with ground floor retail (Exhibit 2).

DISCUSSION

The Phase 3A Conveyance property consists of a single parcel that will have its own quitclaim deed that includes a set of notifications and/or restrictions placed on the property, depending on a number of factors, including past use; presence of existing buildings; and/or previously remediated or existing contamination of the soil or groundwater, if any. In the case of the Phase 3A Conveyance parcel, the sole restriction on the parcel prohibits excavating below a specific threshold depth without a City marsh crust excavation permit. There are no restrictions on this parcel that interferes with the future mix of residential and retail uses in this area. No open petroleum sites coincide with the Phase 3A Conveyance parcel. The Site Management Plan (SMP) for the Phase 1 Conveyance and Phase 2 Conveyance, which is acceptable to the Navy and the environmental regulatory agencies, was prepared in contemplation of the Phase 3A transfer and is applicable to the Phase 3A Conveyance parcel as well. The SMP provides information about historical activities and current environmental status, and contains guidelines to help ensure development and construction are implemented consistent with environmental conditions. The draft final Finding of Suitability of Transfer (FOST) issued by the Navy pursuant to CERCLA is also attached (Exhibit 3).

Several additional documents that will be executed and recorded by the City along with the quitclaim deed on the day of the closing of the property transfer, include the following:

1) Covenants Restricting Use of the Property (CRUPs) between the City and the Department of Toxic Substances Control (DTSC) regarding the City’s ongoing management and enforcement of issues related to the Marsh Crust consistent with the City’s Marsh Crust Ordinance (Exhibit 4); and

2) Bills of sale for personal property, storm drain and wastewater lines in the Phase 3A property.

The Conveyance Approval Package (Exhibit 5) consists of all of the documents listed above, as well as a draft quitclaim deed. Staff is recommending approval of a resolution authorizing the City Manager to accept, on behalf of the City, certain surplus federal property, and to accept, execute, and record conveyance documents in substantial conformance with the Conveyance Approval Package.

FINANCIAL IMPACT

There is no financial impact to the City’s General Fund or any other Fund. The property conveyance is made at no cost to the City. The Phase 3A property is expected to be transferred to the Site A developer.

ENVIRONMENTAL REVIEW

On March 21, 2000, the City Council certified the Final Environmental Impact Report (EIR) pursuant to the California Environmental Quality Act (CEQA) for the Reuse of Naval Air Station Alameda and the Fleet and Industrial Supply Center, Alameda Annex and Facility (State Clearinghouse #96022105), consisting of the Draft EIR and EIR Response to Comments Addendum, and adopted Findings and a Statement of Overriding Considerations, adopted and incorporated into the project all of the mitigation measures within the responsibility and jurisdiction of the City, and adopted a Mitigation Monitoring Program. Subsequently, on February 4, 2014, the City Council certified the Final Environmental Impact Report for the Alameda Point Project (State Clearinghouse No. 201312043) (the “2014 EIR”), adopted Findings and a Statement of Overriding Considerations, adopted and incorporated into the project all of the mitigation measures within the responsibility and jurisdiction of the City, and adopted a Mitigation Monitoring Program.

Phase 3A Conveyance implements conveyance of NAS Alameda and subsequent reuse pursuant to the Reuse Plan, which were analyzed in the EIR. The Phase 3A Conveyance would not require major revisions to the previously certified EIR due to new or substantially increased significant environmental effects. There have been no substantial changes to the conveyance and reuse or substantial changes with respect to the circumstances under which the conveyance and reuse would be undertaken, that would require major revisions to the EIR due to new or substantially increased significant environmental effects, and no new information of substantial importance has been discovered that would trigger or require major revisions to the EIR due to new or substantially increased significant environmental effects.

RECOMMENDATION

Approve a Resolution authorizing the City Manager to accept, on behalf of the City, certain surplus federal property, and to accept, execute, and record conveyance documents in substantial conformance with certain Phase 3A property and conveyance documents from the United States of America, acting by and through the Department of the Navy, to implement the Economic Development Conveyance Agreement for the former Naval Air Station, Alameda.

Respectfully submitted,

Jennifer Ott, Base Reuse Director

Financial Impact section reviewed,

Elena Adair, Finance Director

Exhibits:

1. Map of Conveyance Phases

2. Map of Phase 3A Parcel on Site A Development Plan

3. Draft Final Finding of Suitability of Transfer for Phase 3A Conveyance

4. City of Alameda Marsh Crust Ordinance

5. Package of Documents to Be Executed and Recorded during Phase 3A Conveyance Closing