Memo from City Manager to City Council Regarding Terms of a Four Year Lease with Five Three-Year Extension Options and Right of First Negotiation to Purchase with Google Inc. for Building 400A Located at 1190 West Tower Avenue, January 5, 2016
1. Leased Premises
2. Final Lease
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a Four Year Lease with Five Three-Year Extension Options and Right of First Negotiation to Purchase with Google Inc. for Building 400A Located at 1190 West Tower Avenue at Alameda Point. [In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities.] [Requires Four Affirmative Votes] (Base Reuse 819099)
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Introduction of an Ordinance Approving the Lease Agreement for Four Years with Five - Three-Year Extension Options and Right of First Negotiation to Purchase with Google Inc. in Building 400A Located at 1190 W. Tower Avenue at Alameda Point
In 2006, the City of Alameda entered into a lease agreement for Building 19 with Makani Power, a "start-up" company researching and developing new wind power technologies, including an airborne wind turbine. The Makani Airborne Wind Turbine is a tethered wing that generates power by flying in large circles where the wind is stronger and more consistent. It eliminates 90% of the material used in conventional wind turbines, and can access winds both at higher altitudes and above deep waters offshore - resources that are currently untapped. Their goal is the utility-scale deployment of airborne turbines in offshore wind farms. In 2013, Makani Power was acquired by Google and in March 2014, the City approved a six-year lease with five consecutive three-year options with Google for Buildings 19 and 11 (Original Lease). This lease included a right of first offer (ROFO) to lease Buildings 400, 400A and 12. Google is accepting the offer for building 400A as specified in their Original Lease. The term of the Building 400A lease runs concurrent with Google’s Original Lease and will expire in 2020 in the same year as the original lease expiration.