Introduction of Ordinance Authorizing the City Manager to Execute Lease Amendments for Rent Relief Program with Alameda Point Beverage Group, Auctions By the Bay, Building 43 & Associates, Faction Brewing, Group Delphi, Proximo Spirits, Saildrone and USS Hornet Air & Space Museum via the Non-Profit Spirits Alley Program for Rent Relief in Response to the Covid-19 Pandemic. (Community Development 858)
the City Council. We couldn't pass an ordinance that basically came up with some exceptions on that. That's what's in the charter. And 26 dash, 126 dash to 20 6-3 are in the charter. And you may want to rewrite why you thought people voted for it. You didn't want to, you know, have revisionist history and what the arguments were. But this is what you stuck with. So. That's just the way it is. You did? Oh, yes. I'm sorry. Okay. So thank you, everybody. And thank you, all of you. Randy. So I cut him loose, thanked him for doing a great job. Andrew Thomas. Likewise. Thank you, everyone. Our public speakers and council for your comments. I would just listen to my colleague, Councilmember Vella, who sits with me on the Statewide Policy Committee for the League of California Cities on Housing, Community and Economic Development. And so maybe that's why we're very aligned in our thinking. But I also would have to say that this past November, the vote and I mean from the federal, state, county, local levels, there were a lot of mixed results. I mean, there just were. So what I am more than willing to concede is that I think Measure C was a very confusing issue. And it is true that what people don't understand, they tend to vote no on. And I think now we have an opportunity to do more community education and outreach and the kind of collaboration that I think will actually be helpful. One of the things that Mr. Thomas does really well is to demonstrate what does it look like? Because it's just so abstract. When you think of so many units for Adra, what does that look like? But when you actually see actual photographs of actual real units, dwellings, historic buildings in our city, it's it's a lot less intimidating than threatening it. And even some of it, I think would be welcomed. But I do think we need to have this series of community conversations that will help educate the public and to bring the community along. Will we get 100% sitting together singing Kumbaya? Probably not. But will we have a better understanding of where we fit into this housing crisis and what we can do to help alleviate it? I hope so. I think it's possible. So now we have time, as was laid out in the staff report, if these public forums going forward and I really want to make sure that it can be as widespread and to get the word out, we'll think of different ways to to get the word and the messaging out to people kind of meet them where they are, because this is just a very important issue. And the thing that I fall back on is not only do we we need to to take seriously our obligation to help house people. We do need to be compliant with law, with state law. But these are not mutually exclusive propositions. I think there's a lot of possibilities. So I look forward to meeting with the community going forward. As has been mentioned, a lot of this will take place in the new year. So with that, let's see, we are and we were asked to review and comment on the Big Housing Methodologies Committee's proposed methodology and staff proposed process and being scheduled to update the city's general plan housing element for 2023 to 2031. So again, huge thanks to everyone for contributing to this very important effort, which is to be continued. Look for some public forums coming coming up in the new year. So thank you all with that is going to close this item and we need to move hurriedly on to item six be madam clerk for you introduce that item for us, please. Introduction of Ordinance Authorizing the City Manager to execute lease amendments for Rent Relief Program with Alameda Point Beverage Group Actions by the Bay Building 43 An Associate Faction Brewing Group Delphi PROXIMO Spirits Dahlgren Drone and USS Hornet Air and Space Museum via the nonprofit Spirits Alley program for rent relief in response to the COVID 19 pandemic. Thank you. And who's presenting on this with? We have. It was. There she is. Yes, I see. Miss Butler and Miss Mercado. Yeah. Okay. All right. Are you there, Mr.? Kind of. We're getting. Her. We're looking. Really? Give her. It is falling asleep. It's getting late. Here is Lois Butler. Hi. We're looking for Miss Mercado, but we're confident we'll find her. I'll see if I can locate her. Oh, here she comes. Yes, she's here. Yes, I see your name. Hi. Good evening. How are you? Sorry to keep you up past curfew. All right. So if you're ready to go, we're ready to have you. And we just have to. 1155. You need to take all the money. So why don't you give us a quick overview? Okay. Can you guys hear me? Yeah, just. Okay. It seems like a lot of people are. Hey. So I will try to keep this brief over the. I. Can you not hear me? No, I can hear you. I just want to mute myself. And all of a sudden I couldn't hear you. But keep talking. Okay. Okay. I'm. I'm here. Now. I can see you and hear you. Okay. So I will try to keep this brief. Hi. Is there is your livestream still on tonight? Perhaps it is. I'll turn it off. That's. They're having a problem with, I think. Yeah. There's a delay with it. So oh yeah, the livestream is like 30 seconds later. So it's very like talking over. Okay, I'm here. Is it better? Yes. Yes. Okay. Because I was caught in that live stream. Okay. So I'll try to keep this brief. Thank you, Mayor and city council members. I'm Ninette Marcano in the Community Development Department. Over the last ten months, this council has been grappling with what to do and how to bring relief to our tenants and various buildings throughout the city. We have done a 90 day deferral initially, which grew into the loan conversion program that we we approved and then refined on October 6th and further refined tonight in the on the consent calendar. And just briefly, that is not the program we're discussing tonight, just employee. And at that end, in that program, right now, we have about two applicants. There's one pending. And I'll just tell you, it's Saint George Spirits and Rockwall Winery so that it does not include those in the program we're discussing tonight. That program, just briefly, is the program where we negotiate a six. We negotiate benchmarks that would result in an abatement of rent for the tenants. The maximum of rent abatement under the loan conversion program is six months. And in October, the council allocated $1.5 million to support that program. I don't think we're going to come anywhere near that because a couple of the people who are interested in the loan conversion program have now said they would like to be a part of the new program that the council approved in October, which I call the nine three program. But it actually should be called 933 because it defers nine months of rent. It will be paid back over a three year period. And and I say the extra three because up to three months can be abated if the tenant pays back early. So. It's a933 program. That's what we're discussing tonight. So the council approved that program in October and said, come back to us and tell us what it's going to look like and what the numbers might look like. And so tonight, we have attached the agreement that we would enter into with each of the tenants that have been identified on this list. I want to tell you that they're the totals. It might be a little confusing because the bottom of the I have nonprofit spirits, Ali total and the loan conversion total because what I'm proposing to do is end in this 933 program, the council allocated up to $400,000 because you might recall it at that time. I did the quick math of, what, three months if all of those tenants could total and it was about $400,000. And then the loan conversion program, as I said earlier, the council allocated $1.5 million and I'm recommending that we use that 1.5 million for even the tenants who are applying for this 933 program because they were not I mean, they may they they go outside of the nonprofit Spirit's Alley purview. And so since we had already allocated it for this other program, we may as well use it. And it's going to be far less than the 1.5, as you'll see. Okay. With that said, I do I would like to ask the council to consider adding two more tenants to this list. So when you when you consider the motion that you would also consider adding these tenants. One is Pacific Pinball Museum, which is a nonprofit, and they're a three month total. If they were to do all three miles, it would be 34,500. And then the other one is Wonky Kitchen, which you recall is, um, Spirit's Alley. It's the commercial kitchen, which originally was the dehydrated kale, which is turned into more of a commercial kitchen for for food trucks and sort of an A they want to create sort of a patio at some point with different food trucks, which would be a perfect amenity for us along Spirit's Alley when the beautiful day comes when we can congregate and be together again. So I think we would like to add those two to this. I have added the total and in the bottom line for you so that the nonprofit Spirits Alley total would be 149 632, which is out of the $400,000 that you guys have allocated before, 160 266 would be taken out of the $1.5 million that you guys allocated for the loan conversion program, because those were the applicants who were originally loan conversion applicants. So you'll you know, that's why it's it's divided that way. So to complete the presentation, I would just like to go over the list of the tenants so that you would understand who's who. Made a point beverage group which you might know as bricks that the spirits alis tenant auctions by the day. They were a loan conversion applicant that now wants to go for the 933 program building 43 and associates that is Spirits Ali Tenant Faction Brewing Spirits Ali group Delphi. This was a loan conversion applicant and but and as a reminder, this is a company that completely changed their business model to adjust to the COVID, the COVID pandemic. So formally, they made the conventions, booths and spaces, and now they manufacture pre-fab things for construction of multifamily housing units. And they've kind of kind of generated a new business making those things. So we're very proud of them. PROXIMO Spirits Again, A Spirits Alley Tenet Sale June an original loan conversion program applicant who wants to do the 933 and then again Pacific Pinball and. Wonky Kitchen. Those are the two that I would like to amend this staff report for. You also need to include the US as Hornet. Oh, I'm sorry I skipped them. Yes, the USS Hornet, which is a museum. And I see the city manager has his hand up and so. Mr. LEVITT. Yeah. Yes. I think because of the way the agenda is, I would recommend that the pinball museum and the wonky kitchen maybe would need to be on a future agenda. Okay. Yes, that's a very good point. Thank you. I see the city attorney looking very relieved and thank you. Yes, good point. Well, you you were to bring that back. Yeah, it'll be the exact same staff report, but with just the new names in it. Sure. Okay. So did I see council hands shooting up there? I think it said Councilor or you Councilor Vela Councilor voted. Go ahead. I just had a quick question. I mean, yeah. Thanks for this, by the way. I think it's exactly what we asked for, the wonky kitchen, even though we're not voting on that. What was the amount. For three months of wonky kitchen is 7700. Wait, stop, stop. We don't talk about it. This is not agenda as we cannot discuss it, it will come back to us. Did you have anything that was on the agenda to ask the council member? Well, it just said that I was sorry. Either we are not going to talk about items that are on agenda. All right. All right. Sorry about that. Okay, Counselor. We should have stopped that earlier then. You're right. And stopping it now, Councilor Rebello? Yeah. I was just going to ask about whether or not we should be getting into a couple of the things that were discussed. But with with it, yes, but I did have a question. If you could just reiterate in terms of what's within the agenda item, what the total she's asking for or it is excuse me for I time as it's in the staff report. Right. It's for the nonprofit spirits Ali Total. It's $114,000, 114 132 and that's out of the 400,000 that you guys set aside. And then 460 266 and that's out of the $1.5 million that you set aside for the loan conversion program. Thank you. I have a question and I actually emailed this to staff earlier today. I would like to add a clause to the agreement, to the ordinance, and to the effect that if a recipient of these funds is found to be in violation of an order issued by the county public health officer and I would say found by a code compliance officer, a police officer or a member of city staff, then they should forfeit any benefits received under this program because there have been instances in the not too distant future when people we gave them an inch and they took a mile. And when it comes to COVID 19 and holding risky events and exposing the public and prolonging this pandemic and increasing our COVID numbers, I am really no nonsense. So you do not you should not benefit from our largesse as a city in this generosity and at the same time be flagrantly violating a public health officer rules. So I would like that. And I checked with the city attorney's office who said that was doable, but that would be my request to council that we incorporate a language to this effect into the agreement. I saw that Councilmember De Soto hand Councilor Brady said. Just to clarify in question on that issue that you just raised. Do you mean for this to be going forward, if you're found in violation of something after this date, then you. Right. Okay. Right, right, right. Right. If you before we approve this tonight, let's assume we're going to approve it and go forward. People get the the these funds and then they decide to hold some large gathering, something that's in violation of the public health officer. And we've had a couple of instances, and I just I don't think we can afford to reward that kind of behavior that just puts us at risk. And our businesses are just. Hanging on by. A thread. So we don't we just don't want to prolong this the situation any longer. So it's just, you know, do what you're supposed to do, basically. But if you don't that. And so we've got to clarify questions. I should ask the city, do we have any public speakers on this item? We do not have any speakers. And usually when I ask that question, then they arise. But anyway, Councilor Odie, did your hand go back up. Yeah, I'm just curious on I mean, maybe the city attorney can explain how that's permissible. You know, because I wonder if there's vested rights with the lease amendment that. Well, first of all, I didn't see it in the agenda or in the alternative. And second of all, I wonder if that's even something legally we could do, because there'd be vested rights and we'd be asking somebody to repay. Hypothetically, it's group Delphi 180,000 without due process. Councilmember Odie I yes, the Councilmember Odie. I do believe that the Council could make this requirement. It would be before they signed the lease lease amendment, it would be in the lease amendment and then the businesses would sign it as part of the lease amendment. We're not granting an entitlement. We're simply negotiating a contract. And in that process, before they sign the lease. We can put that in as one of the provisions. That essentially revokes this grace from the council, so to speak, for relief if they violate the law. And I do believe that that will withstand judicial review. At least amendment exhibit one for at least amendment doesn't include that. So, I mean, anyone that looked at the agenda wouldn't know that we were considering putting that in unless they were on at 11:25 p.m.? No. Councilmember that that is correct. So the council regularly makes modifications to ordinances. And items that are. Fairly well agendas. And this is simply a provisional change. It's not, for instance, adding. Entirely different parties. And so I do believe that that is within the council's province to do tonight. Okay. Well, I don't disagree with the intent. I'm not quite sure it's permissible, but I'm not going to let that get in the way of me approving this. All right. Any further questions, comments, motion calls we were given. I'd like to move approval with the amendment language that the mayor has asked for to be included in in whatever whatever lease amendment we issue. And I just want to thank staff for working on this. I think this is just it's helpful to hear who's taking advantage of the different options that we have. And I look forward to having the conversation about how we can continue to help our businesses. Thank you. Thank you. Yes, I can. Some of those things if you we have a motion to move a second second member, Odie has seconded any further discussion. We're not quite. Quite sure. I support the intent. I guess my question is, what is the actual language that we're inserting? Since we're proving it tonight. And the attorney, maybe. If I may, is. Yes. So, Councilmember Knox, why we will draft a language that's consistent with the council's direction, not dissimilar to other. Direction you've. Given us, so that we don't have to read in specific language tonight. Well, we think that the direction is fairly narrowly tailored, so we should be able to get your language. It will be something to the effect of if the lessee is found to be in violation of health officer orders by a law enforcement or a code enforcement officer, then this amendment shall be a no further forces act and so on and so forth. So we will certainly get that together and then you will see it in second reading. And my assumption is that that that any of those code enforcement violations that were found would be similar to the very few that have been found so far. We're not going to pull somebody's loan because somebody wasn't wearing one. One employee wasn't wearing a mask when somebody walked in. No, no. I just want to. I think. There's a level of severity where I think, yes, I agree completely with this, but I just want to ensure that whatever language doesn't lock us into if somebody gets caught, right. Somebody filed a complaint, gets caught and they're employed and have a mask on. And I just. Know. Whatever that language is needs to be clear that there's a there's a threshold level of violation that needs to be. Great. Right. Okay. Anything further? Okay. Madam, quickly, we have a roll cover, please. Let's remember de sag. Yes. Not quite. I oti. I. Well, I may as the Ashcroft high carries my five eyes. Thank you. Thank you, Staff. Good. Good work on this important item. Sorry to keep you up so late. Thank you. Thank you. Good night.