Memo from City Manager to City Council Regarding Document Outlining the Approach to Attracting Development to the Enterprise District at Alameda Point and a Six-Month Status Update, October 4, 2016



1. Enterprise District/Map of Site B

2. October 20th, 2015 Enterprise District Staff Report and Presentation

3. Approach to Development in Enterprise District Document

4. Draft minutes from the July 20 Economic Development Panel Meeting

5. Enterprise District Marketing Brochure

6. Sample Broker Blast

7. Sample Targeted Mailer



In April 2014, City Council directed City staff to issue a Request for Qualifications (RFQ) from developers for an 82-acre commercial development site within the Enterprise District at Alameda Point, previously referred to as Site B (Exhibit 1) at the same time as the RFQ for the 68-acre mixed-use Site A project. Although there were four qualified developers that responded to the RFQ, two of which the City Council selected to negotiate with, the negotiations stalled because the developers were not willing to commit to upfront infrastructure, land payments or a milestone schedule for implementing development due to the uncertainty of the commercial market in Alameda and the high cost of infrastructure. As a result, in December 2014 the City Council approved postponing any decision on Site B until 2015 when there would be more certainty about the Site A development and the timing of its infrastructure development which had the potential of significantly benefiting commercial development sites.

In July 2015, the City Council approved the 68-acre Site A development consisting of 800 housing units and 600,000 square feet of commercial space. The first phase of the Site A project is in the design and construction phase and is comprised of major infrastructure investment, including a new upgraded sewer line from the pump station at the northern boundary of Alameda Point, the “gateway” extension of Ralph Appezzato Memorial Parkway, a waterfront park and retail amenities, and a significant contribution towards a new ferry terminal in the Seaplane Lagoon. These major investments help to minimize the uncertainty about the schedule and commitment toward infrastructure in other parts of Alameda Point, including the Enterprise District.

On October 20, 2015, the City Council approved a new approach for development at the Enterprise District at Alameda Point that focuses on attracting major commercial businesses or “end users,” instead of commercial developers. The staff report (Exhibit 2) outlined the three-phase approach that is tied closely to the Site A development milestones over the next 24-36 month period and uses them to draw attention to the Enterprise District. This approach provides the greatest flexibility in marketing and use of the site until an interested commercial user or developer is identified. The Council also approved staff’s recommendation to use Cushman & Wakefield to market the Enterprise District and leverage their existing knowledge and experience at Alameda Point and the many connections throughout the Bay Area.

The approach to attracting new jobs in the Enterprise District builds upon the strong leasing activity in the Adaptive Reuse area and leverages the City’s current leasing strategy at Alameda Point of targeting high-profile and attractive tenants, such as Google, and clusters of industries, such as clean-tech, food and beverage manufacturing users and artisan makers. This leasing strategy and activity lays the foundation for commercial expansion and attraction elsewhere in Alameda Point, including the Enterprise District. The Alameda Point leasing program consists of 1.8 million square feet of commercially leased space for approximately 66 businesses and 1,000 employees.

At the October 20th meeting, the City Council also directed staff to return to the City Council with a written document that consolidated the information provided in the staff report and presentation into a single stand-alone document that could be reviewed, referenced and updated as necessary and provide 6-month updates. Staff has prepared that document for City Council acceptance (Exhibit 3) and a presentation on the first 6-month update.

On July 20, 2016, at the inaugural meeting of the Mayor’s Economic Development Advisory Panel, staff presented the document describing the City’s approach to attracting development to the Enterprise District at Alameda Point and solicited their feedback. The Mayor’s Panel was supportive of the document and recommended no changes. Draft minutes from their discussion are attached as Exhibit 4.