8 20-0794 Subject: Henry J. Kaiser Convention Center - LDDA Second Amendment
From: Economic & Workforce Development Department
Recommendation: Adopt The Following Pieces Of Legislation:
1) An Ordinance That Authorizes The City Administrator Or Designee To Negotiate And Execute A Second Amendment To The Lease Disposition And Development Agreement (LDDA) Between The City Of Oakland (City) And Oakland Civic, LLC (Oakland Civic}, And Related Documents, For Renovation And Rehabilitation Of Cityowned Property Located At 10 Tenth Street, Commonly Known As The Henry J. Kaiser Convention Center (Property), That (A) (I) Modifies Certain Closing Requirements, Including Eliminating Non-Binding Letters Of Intent Pre-Lease Requirement And Surety Bonds And Increasing Required Guarantor Minimum Net Worth From 25 Percent To 50 Percent, And (II) Adds Notice And Cure Rights For Tax Credit Investors; And (B) Makes Amendments To The Form Of The Lease Attached As Exhibit C To The LDDA To: (1) Revise And Insert Definitions Of Sponsorship/Donation Agreements And Naming Rights, As Applicable, And Specify When Proceeds Of Such Agreements Will Be Considered As Gross Income For Calculation Of Rent Participation; (2) Document Rights Of Oakland Civic And Calvin Simmons Theatre (CST) To Enter Into An Event Use/Sponsorship Agreement With The Kaiser Foundation Health Plan, Inc. (Kaiser Foundation) For A Term Of Up To 20 Years, For A Maximum Payment Of $1.5 Million To Be Used For Renovation Of The Theatre Consistent With The LDDA And Lease, And Related Documents, And (B) Authorize The City Administrator Or Designee To Negotiate And Enter Into A Recognition Agreement With Kaiser Foundation For Such Event Use/Sponsorship Agreement, Subject To Certain Termination Rights And City Protections; (3) Document Oakland Civic's Consent To The City Entering Into A Naming Rights Agreement And Related Documents With Kaiser Foundation For The Property; And (4) Make Minor Revisions To (A) Add Notice And Cure Rights For Tax Credit Investors; And (B) Correspond With The Agreed-Upon Community Benefits Agreement Between Oakland Civic, CST And Black Arts Movement And Business District Community Development Corporation; And
After almost 6 years, ODI has continually failed to perform on key milestones, engage in any credible good faith efforts to support community will, or provide any significant benefits. Staff and Council have also failed to pursue viable development alternatives that would provide significant revenue, jobs, and community support in the face of severe deficits and great community need. Further- alternative plans exist to restore traditional use of the arena and Calvin Simmons Theater as a cultural epicenter for the city, even in the age of COVID 19, and in coordination with surrounding institutions Laney College, Oakland Museum, and OUSD.
The current ODI project is touted as an affordable nonprofit arts center, yet only a small portion of the space, a majority in the basement, is dedicated to nonprofit arts groups, at a rate of $2.80/square foot, which is closer to market-rate than what is considered affordable to most nonprofit arts organizations.
Receiving approval for federal historic tax credits should help make this project workable. In addition, a state historic tax credit may be available as of 2021. I urge you to move this project forward so that we can rescue this iconic building. Thank you so much for your support.
After almost 6 years, ODI has continually failed to perform on key milestones, engage in any credible good faith efforts to support community will, or provide any significant benefits. Staff and Council have also failed to pursue viable development alternatives that would provide significant revenue, jobs, and community support in the face of severe deficits and great community need. Further- alternative plans exist to restore traditional use of the arena and Calvin Simmons Theater as a cultural epicenter for the city, even in the age of COVID 19, and in coordination with surrounding institutions Laney College, Oakland Museum, and OUSD.
The current ODI project is touted as an affordable nonprofit arts center, yet only a small portion of the space, a majority in the basement, is dedicated to nonprofit arts groups, at a rate of $2.80/square foot, which is closer to market-rate than what is considered affordable to most nonprofit arts organizations.
Receiving approval for federal historic tax credits should help make this project workable. In addition, a state historic tax credit may be available as of 2021. I urge you to move this project forward so that we can rescue this iconic building. Thank you so much for your support.