Alameda City Mayor’s Economic Development Advisory Panel/Economic Recovery Task Force 12/11/2024
Transcript
Agenda item for oral communication public. If the public would like to comment on an item, please email Eric Fonstein at efonstein@alamedaca.gov. Comments submitted during the meeting before the conclusion of the public comment section will be read into the record. If the public would like to comment and has called in by phone, please dial 9 to raise your hand. Comments from the audience may concern matters either on or not on the agenda, but must deal with matters subject to the jurisdiction of the mayor’s economic development advisory panel. Comments will be limited to 3 minutes. Comments concerning matters on this evening’s agenda will be heard when that item is called. Eric, do we have any speakers or comments? So far, no.
It’s, even though it looks like we don’t have any questions. It’s not easy. Yeah. Which brings us to the consent calendar. We have nothing on the consent calendar, so we’ll move to regular agenda items. Tonight’s agenda item 6 a is an update on the Alameda Point Piers and the Alameda Maritime BlueTech strategy. Before I turn it over to Abby, just a reminder on how we proceed. First, Abby will give a staff presentation followed by clarifying questions from from the panel, followed by public comment. And then at the close of public comment, there’ll be a time for a panel member discussion. Abby?
Thank you. Good evening, everybody. I’m pleased to be here and I’m very pleased to have a special guest speaker tonight presenting on the Pierist and Maritime Strategy, Ron Golomb. Ron has been an economic and real estate consultant for and and well, in the economic and real estate world for many, many years. Most recently was the director of, real estate real estate at VTA down in the South Bay, and was a long for a long, long time, consulted at Bay Area Economics before then and is now hung out on some shingle very luckily for us. So we have a lot of really decent real estate and economics experience. And Ron has been doing a lot of background analysis that he’ll present to you tonight, for our discussion. So you wanna take it away, Ron? I will. Thank you.
I’m gonna say it here. Say it. Say it again. Okay. We could do it then. Second here. I need to my machine will be in sync here. Okay. Okay. So thank you for the time introduction.
As I already mentioned, I’ve been working for about 3 decades in creating public private partnerships, really advanced economic development as well as sort of, brutalization. And I’ve worked on about a half dozen base closure projects. So it’s a lot of, interesting experience along the way. Who put this in the presentation? I see it’s not a PDF. Right? Sorry. No. That’s Hi. Good.
So what we’d like to do tonight is and what you saw in the packet is, you saw both the staff report and then you saw the detailed draft, strategy for maritime and blue tech uses that’s prepared by Geis Hommerston. So what I’m gonna do is go ahead and kind of give a very high level overview and then really post some questions that hopefully will set the stage. And, obviously, what we’re excited about is really getting your input and expertise to help us think about how to sharpen the thinking that we’re doing and the work that we’re doing. So what I’m gonna talk about tonight are gonna be the opportunities for the peers of waterfront at Avian Point. I’m gonna touch on the challenges that we have because of the conditions and flooding needs. I’m gonna talk about some of the potential strategies to advance maritime fleet type uses. And I do wanna note that while we’re focused on the working waterfront, which you see on the graphic that we have here, as well as what we’re calling sort of a maritime blue tech area behind it, where we have a number of tenants in the maritime center already, this area is adjacent to the enterprise district. And, obviously, there’s also opportunities we think for synergies between what’s envisioned for the enterprise district and really those types of businesses and what’s happening here. And so, again, what this is really all about is getting your guidance, to help shape our thinking about what should be the priorities and actions that have to be taken. We have a good sign on.
That’s the challenge is now we have to figure that out. Is this development, can I ask a question? How do I do that? Is this, the development of a new specific plan or an additional specific plan for Illumina Point? Or I think at this point, it’s not so much a land use exercise in terms of thinking about specific plan. It’s really more on strategy in terms of economic development, which is what are the kinds of uses we wanna track? What’s the sector that we wanna try to create and build upon here? And so it’s really a little focus in that direction. That’s not to say that there wouldn’t be perhaps a specific line down the road, but I think we’re a little bit early in the process than that. Can I augment a little bit, that that it’s really more of an investment sort of at some point the city is going to have to make financial decisions about the pier?
So it’s an investment plan, but also I think policy decisions that Ron will go over that are not yet, as LeBron said, not land use, but more of just just more real estate policy. So that’s more of the feedback we’re looking for as we get. Great. So I think a good place to start is really to think about what is the competitive advantage that was Alameda? And, you know, it doesn’t say it very simply, what we have at Alameda Point, which is Okay. Which is, you know, there’s there’s only a few number of place to be here that have this, but we have a working waterfront that’s able to accommodate various maritime uses. We don’t have a facility that’s foreign in towards cargo like Port of Oakland, but we do have a facility that’s a lot of really support a broad range of other maritime, cable tech activities. The fact that we’re adjacent to the Port of Oakland is a huge advantage in terms of support activities that cannot be accounted important and have been here in the past. The fact that we’re also on the other side of Alameda Point from base shipping yacht, from a functioning working shipyard that works with all kinds of garment and fire ships is also another big advantage. This is not something we’re talking about creating from scratch.
We already have a dozen maritime blue tech tenants at Alameda Point, so we have a cluster here already. This is really a discussion about how we grow and expand the cluster cluster to really help fulfill goals for for Alameda Point. And it’s also worth noting that we have available buildings and sites that are both available for reuse as well as new development. And really and this is where it ties into the city’s economic development strategic plan. This is about how can we support the city’s goals for job and business creation and workforce development when we think there’s real opportunities in maritime, in Bluetech sector. The graphic you see shows, well, simply, in peers 1, 2, and 3. Although, obviously, we have significant current uses such as the USS Hornet, you can see him in peer 3, power engineering at peer 1. Pier 2 is not in use at all. I’ll sort of have that more embedded. But we have some pretty substantial unused per assets.
And as you can see in line with that, we have a pretty fair amount of land in our buildings. And, of course, we have the the SF Ferry, formerly known as WIDA. We have their maintenance and operations facility. So just to talk briefly about what we have already happening at, Alameda Point. So maritime needs to include merit, not the shifts, but some warehouse and support activities they have. NASA navigation, we have Banner Sea Republic Services that supports, maritime, firms. We have power engineering, you know, we have the asset Bay Fair. We also have some significant recreational waterfront uses, the US Department Museum, the LME Utility Center, as well as Tech Adventure. And then BluTech, which I’ll talk about in a minute, but really more research and development oriented uses that we have, including door marine, mangrove boats, Kite Concepts, and Pansail drone. And these are facilities that only use the piers at Alameda, but they’re actually using the seaplane, specifically the seaplane, ramps as well as the small dock that’s over there.
So the images on the right are really trying to show 2 things. On the upper image is really giving you another view to show you the piers and the relationships, the land, and the the buildings that are cut up behind them. And in all, we have about half dozen buildings, and we have 20 acres of land that could potentially support a broad range of maritime, and and blue tech activities. How far east does the land area extend for this? For discussion, really, if you look at kind of Orion Street here, this is the dividing line where these are really maritime blue tech uses that are on this side of of Rhine Street, whereas on this area, on the other side of Rhine, it’s really Enterprise District. And if you saw the city council presentation a couple months ago, that was when the boundary tour was talked about parcels and phasing. But I also wanna touch on another issue that’s really significant for this, and that’s the public lands, public trust restrictions. So as true in all of our products in California, what you see in this area, midshaded green, I realize it’s a little bit weak, but you can see the areas that identify as part of the public trust where there’s actually restrictions on what can go to those areas. And those restrictions are really oriented towards preserving, you know, maritime uses, public access, and so on. And so really about 6 acres of the area we’re talking about is already in the public trust.
In a lot of ways, and this is kind of 1 of the considerations, is that 1 of the challenges that we appoint is that per policy, you know, the city really has to get fair market value for when it’s supposed to properties because the need raised funding for infrastructure or if it has to happen to to allow the plan to be implemented. When you look in this area, because of the use restriction on maritime because of public trust, that actually supports lower land value. Since a lot of ways, it kind of also makes this area a better fit for a lot of maritime and BlueTech uses because it really does support lower value than potentially lower rent than you would than the sea would have to realize in the parts of of that viewpoint per the current policies. So I’ve talked about the piers in waterfront, but as I mentioned, it’s also worth noting what’s happening with Seaplane View. And, you know, the key thing about the Seaplane View is that and this goes back to the current plan from your point. This is the area that’s really seen as public access to public faces with a lot of uses They’re focusing public activity here to really protect the piers and more working waterfront environment that is not necessarily as as open or as accessible by the public. So going back to the town center and waterfront precise plans that are adopted, the eastern side is envisioned as, this area here is envisioned as a mixed use urban waterfront development. So basically, think about mixed use residential with ground floor chimney voices. Pardon? No.
You touched that. Can you dance? Oh, sorry about that. Oh, sorry about that. Hang on. Oh, boy. So what I see here is really, mixed use development where you have, you know, retail, restaurants, commercial activities, and places plugged into the waterfront with residential use of weather. On the north side, you have new new waterfront product. I’m sure you see the first piece there that was part of parcel layout. You have a new urban waterfront, that really is kind of a public area for people to enjoy the And, obviously, part of that is gonna be thinking about how to preserve the use of the seaplane ramp by the tenants who are in the hangars.
What you also see in this graphic, and the rest is a little washed up here, is what the plant envisions is additional development between that waterfront pond and the existing hangars. And then finally, on the western side, what you see is kind of all goals for habitat restoration and passive recreation. So now I’m gonna get to the nitty gritty bouts, really the challenge that we face here. When we talk about sort of the piers in the waterfront area, we have some really substantial costs for both improvements and repairs and ongoing operations. The city simply doesn’t have the funds to to cover. The graph that you see here is a picture of a damaged pile at Pier 2. You can see the pile shear. There’s a lot of these at Pier 2, which is why it’s been closed to large ships there. Lesser issues than the other piers, but, you know, I think as folks appreciate, the maritime environment is an incredibly corrosive environment. And anything that is in the water requires a lot of ongoing maintenance to really be, say, in an operating condition.
So the most immediate issue that we’re thinking about is dredging. And so you may be aware that Mara lehi a couple of years ago because their ships were large enough that they were getting a little concerned about was it an assurance for their ships to range to pier too. You know, when the navy was here for the aircraft carriers, they need about 35 to 40 feet of draft for those ships. We don’t have that anymore. According to studies that we’ve done in the past, pure areas sold something about 6 inches per year and a train base in about a foot a year. And so if you do the math, you can realize maybe another 10 to 15 years, we could be in a situation where we have the ability to really accommodate pull off your shifts. And so I’m saying this because it really shows that there’s a need for an ongoing dredging. It needs to happen every few years. Now in a minute, I’ll talk about a study we’re doing sharpness. But based on prior work that’s been done, we think that if you sort of average that cost per year, it’s about $4,000,000 per year to dredge the the the area from the peers to the train basin.
And that $4,000,000 a year is simply money that doesn’t exist in the city’s budget to cover that cost on an ongoing basis. The next issue then is tier 2. And based on prior studies, and again, we’re gonna update this. We think there’s at least $15,000,000 of cost and probably more to fix tier 2 so that you could have large ships like, birth clearance passed. Now it is possible for a much more modest air repairs to get smaller ships, names, types of ships that are in there. But right now, there’s a real constraint in how you can use peer 2 because repairs could happen. What you’ll see when you look at the draft strategy and what’s in the packet is there’s a lot of scenarios in the back that talk about what are different ways of if we have birthing and the fees we collect from birthing and the revenue we generate, how does that compare to these costs both funding the dredging and funding the the, pure repairs. And what you’re assuming with those scenarios is none of them can curve that cost. It just does not generate enough revenues relative to what those long term costs are gonna be. And so what it really leaves us is the realization that if we’re gonna sustain kind of dredging activity, we’ve gotta find federal and state funding to be able to cover those costs.
And so that’s 1 of our key challenges here is that this is something that’s gonna require a larger effort in funding from other partners to be able to sustain the pure use and the water quality. So I’d like to talk for a minute now about based on that background, what is the city doing right now? The staff has been processing. These are some of these actions will become the council in the near future. The first is to hire a marine engineering firm to really develop updated information on what the water depths are right now, an updated bath and hydrant study, as well as updated cost for both the dredging and what their peer repairs are gonna be. And those costs have sort of 2 components for dredging. 1 is sort of what is the periodic ongoing cost, but there’s also a decision which we’ll talk more about which depth do we need to get to. Because if we can let the depth be a little shallower, you know, you don’t have much 1 time cost as compared to if we felt we had actual depth that was here when the navy was birthing aircraft carriers. And so that’s 1 of the questions. The staff is also working to set up a port management contract to handle short term licenses for both the impures 13.
You know, we have about half of the pure 3, all of pure 2, and pure 1 where we could have short term growth. We could be generating revenues, but that’s not something that’s been happening. So that’s an opportunity that that we’re working to really put that in place. As I mentioned, part of asking, making some minor repairs appear to to allow us for growth activity. And then, of course, the other thing to ask this discussion tonight is that you see the draft strategy document. But really as a strategy document, it lays out what the opportunity is and what we can do. But there’s a lot of work beyond that as to how you actually go about implementing data. So that’s the work we’re starting out. That’s where your input will be very helpful both in terms of the strategy as well as how you go about implementing it. So now let’s take just a couple minutes to talk about Bluetech specifically.
So, you know, these are not hard and fast definitions. I think most folks are familiar with maritime. It’s really being activities focused around shipping, cargo, you know, waterborne transportation, as well as recreation. And Bluetech is part of that. But where the Bluetech term comes from is really a subset that’s focused on more of r and d activities, research and development, technological innovation, and really create more sustainable use of ocean and freshwater resources. And so a lot of traditional shipping companies are already in the space because there’s a lot of discussion about how can we make things cleaner. To talk about SF Ferry, They’re thinking about how can they electrify the ferries. And so right there, you’re at sort of leading edge of where, vessel engineering is as to how do you create and let the ferries sustain that kind of operation. And it’s really a great topic because when you think about the ocean right now, 1, we don’t understand a lot about the ocean. The state of science technology is very thin.
Obviously, just having the ocean is very relevant to climate change as many issues are happening. There’s a lot that’s going on about the resources in the ocean that could support various kinds of economic development, rare minerals, and so on. And so this is really a big topic that I think is gonna be expanding as all these different issues come together. The exciting thing about Bluetech as well is that because it covers the broader sector, but there’s also a lot of startup firms, you have a wide range of firms that are involved in doing that. And then the other thing that’s exciting is that we also see this to be an opportunity for workforce development. When you look at this topic, and this is something that’s happening, you know, there’s already a working waterfront coalition here in the Bay Area that we have been working with to think about how do we kind of create and get more people into these jobs that have a range of skills that can be kind of paying that are really promising. You also have female or participant. You know, just the other day for a contact with someone working in SaaS. Legal is thinking about how do we kind of focus in the region about creating more career opportunities in waterfront jobs. This is also a hard topic because specifically maritime, blue tech are the priority sectors identified in the city’s economic development and education plan.
And then finally, as we know, the Bay Area is an incredible place when it comes to, technology, startups, the environment to support that, the kind of workforce that’s here to help develop prototype products. At present, there’s not a lot of venture capital, for maritime blue tech, but I think as time evolved, that’s another opportunity here as well. So when we talk about the maritime feedback strategy, where are some of the considerations? This is something that a lot of ports and and waterfront, places are thinking about in the ports of Los Angeles, Seattle. They are actually providing funds to create an incubator to actually be a place to kind of spur creation of these kinds of firms. The picture you see is from the Port of Seattle’s Maritime Innovation Center, which they hope to have also opened by the end of next year. The Port of San Diego is not framing this facility, but they do have a program where they are working with firms again in trying to support startups without actually having physical facility. So ports are great because they have a big operation. They have a lot of cash flow and funding. They can support these activities.
Again, that’s not the situation at Synod. You know, the other consideration here is that when you think about places for for Bluetech activities, like most start ups, and this is true at Maritime Houston in general, they just typically don’t pay the kinds of rents you could do to support the development. So if you think about a new industrial building, a new warehouse building, you know, cost building that, you’re not gonna be able to charge these types of tenants that sort of rent. And so where that leads us to realize is that in a lot of ways, this is an exercise about how can we identify who are the partners and the funding sources that can help us pursue an incubator accelerator, if that’s important for early stage blue companies, or even just pursue those kinds of permits that we don’t have an incubator on. Now that’s a lot about what’s not happening now. We already do have cluster of BlueTech users and maritime users. We have a great facility in terms of the Pearson Waterfront and buildings that support this. And so there’s also opportunity to market this opportunity and just raise the visibility that LME Point is here. It’s doing it now. This is an opportunity, and this is something the city is encouraging and welcoming.
And I also wanna note too that going back to the enterprise district is that 1 of the issues that’s been identified in sort of the working waterfront in this sort of what we call the maritime boutique area. There’s not a lot of power up there. You know, tenants do run up against electrical issues. But the enterprise district next door to it, you know, part of that project is getting upgraded electrical infrastructure. So it also is catalytic in the sense that that project and that investment can really also benefit this area in terms of a very, significant electric needs. So I know I just threw a lot of background at you, but this is all to set the stage for discussion we’re hoping to have. And so these are some questions that we wanna post, and we’re also hoping to get your thinking about what are questions that we’re not asking that we should be asking, and just how we should approach it. So just to run through these. Which investments would best leverage our maritime assets for job and business creation, innovation, and workforce development? What are the implications of maintaining large depth at 20 feet to 30 feet for smaller midsize ships versus up to 40 feet for larger ships, so similar with the navy in the past? For bridal organizations, what should be the actions that they take? Who are the potential partners in this effort that we should be engaging? And then finally, how beneficial is an incubator or accelerator for tracking maritime blue tech uses compared to other actions that might be taken? So that concludes the presentation and we’d like to open it up for your questions at discussion. Maybe we could just leave the questions up there. Yeah. That’d be great. I mean, I guess I point a question to our 2 maritime guys here. Is there a big universe of of companies up there that would in economic development that would come if it’s because of the waterfront or rehab?
I think so. There’s a lot of new startups that are focusing in on the ocean areas, whether it’s climate, ocean mapping, a lot of drone development in the defense sector. When you see that playing out live on news and you see whether it’s in the Ukraine or in somewhere in other parts of the world that this drone technology is advancing fast. So like a lot of startups that or people that have ideas and think that they can sell, but like many startups, right, the funding is difficult. And so I have the idea about idea conveyor, I think is really strong and linking that to your access to the maritime, the water access, because you can’t find that in many places in the US and so other startups that are like a sales job and I know there’s 1 in like Louisiana, there’s 1 in Boston, everywhere that you have a strong maritime kind of presence, you see little companies pop up, and obviously that’s kind of part of the ways you see that the part of LA, has that same kind of sector that they’re trying to attract. So there’s a lot of opportunity and as companies like Celltrion become successful, that’ll spur other companies wanna get into the game, and the competition grows. So now’s the time because the ocean is gonna be the next big sector, not big like the dotcom or that, but it’s gonna grow and it’s still untamed environment when it comes to opportunities. Yeah. The, in addition to drone technology, there’s a lot of automation pushing into the maritime space. Everything from, sensing technology to full automation of shipping.
You know, they’ll kinda life probably in our lifetime, a time where you don’t necessarily have to put a crew on a ship in order to point it from a to b unlike cars. It’s, there’s a lot of interest in the science of the ocean. There’s a lot we don’t know about it. Technology is pushing into that space. And then there’s the whole maritime energy space. Everyone thinks of offshore wind, but, there’s a number of companies that are pursuing ways of generating electricity, whether it’s for a localized grid or on a mass scale just using wave energy, thermal clients, and temperature or salinity. Little more controversial. There’s an interest in mining offshore, aquaculture. They had a photo of AltaSea, which is probably the the best example. If you don’t know, AltaSea is, a partnership of the Port of Los Angeles, the city and county of Los Angeles, USC, UCLA, and the state.
And what they did is they took an old fruit terminal that didn’t have back in the day, they used to ship things in on pallets and ship them off. Now everything’s containerized. And in order for a container port to work, you have to have a back lehi that can support the size of the ship that’s arriving. And so some of the older ports in the port of Los Angeles, while they’re in good condition, can’t function as a container port. And 1 of those was this fruit terminal, and so the port looked around and said, what can we do with it? And the state was interested in workforce development. So they developed all to see, and all to see provides an incubator space. It provides workforce job training. It provides outreach to, more challenged communities to point out that there’s opportunities on the ocean. And then it’s it’s kind of a maker space.
You can get down there and you if you had an idea and you wanted to start a new company, you can rent space. And then if you need it, there’s a machine shop and a well bay and a blast bay and a crane. And so what it does is it allows, young people coming out of some universities if they have an idea to spin it out without having to pay a lot of money to sort of capital expenses upfront. And it’s it’s an opportunity that the city of Alameda has because they have an unused wharf system. 1 of the challenges on the West Coast is is building on the water is just the entitlement process. And so, people tend to default back to existing structures. It’s almost impossible to build over the water here in the Bay Area. There’s a whole notion that if you cover the bay, you have to uncover it somewhere else and, that leads to a lot of disinvestment along the waterfront. So places like the Port of Oakland aren’t interested in something like this, because they can make their money moving containers. And so they’re my next question.
Yeah. Support. We haven’t intended this, but Right. You answered it already. Yeah. Yeah. They don’t. And they only want to move containers. I mean, there’s other things you could do here. There’s there’s a there’s sort of the odd cargo that comes into a port, very difficult to unload.
We ship a lot of our odd cargo. We actually take it up to Stockton because the ports here in the Bay Area won’t touch it because their their business model is based around throughput. But the more exciting option is to do something like an all to see or Seattle’s doing it and San Diego’s doing it. And what I think cities maritime cities are recognizing is the next frontier is probably building ships here on the West Coast. It’s probably embracing technology and sort of a race to see where that node is gonna be. It’s probably clustered around a university somewhere, because all those ideas are coming out of places like, UC Berkeley has an ocean engineering program. I would say we get a call probably once every 3 months. It’s 3 or 4 young people that have an idea, and they they wanna rent some space, but they wanna spend a lot because, you know, they just have an idea. And until they can prove that idea out, they’re not gonna attract funding for it. So, what I I don’t know if either of us could speak to is how do you monetize that?
Because what you’re really saying is if we could get incubator space and you could get the first ideas, maybe those people would then move into a building that Joe would build, you know, as their build business became successful. So in some ways, it might be a lost leader. That’s the sort of the unknown of the equation is, you know, how do you make money off of these sort of new ideas? Probably 1 in 10 are gonna hit. That just builds on what you’re saying here. I think that’s really 1 of the policy questions is the city has really had this position of, you know, achieving fair market value and obviously the vast majority of fair market value at Alameda Point goes into its infrastructure. But I think that’s kind of 1 of the policy questions as Ron mentioned, the state lands trust area that’s in green there that does have kind of a naturally suppressed land value because it’s restricted in terms of what can be used. But Ron’s, kind of the hypothesis here or the proposal is extend that and I know power engineering is in this area, so acknowledging that, but extend that geography out to Orion Street, which captures more land. But the city then has that policy decision to make about that’s not a monetizing strategy. And that’s 1 of the policies.
So I’m sorry to interrupt you. No. We won’t interrupt you again. I think this is just an open discussion. And I don’t wanna speak too much on it, but that’s just to sort of set the table is the maritime industry was neglected for years. I mean, we were ships were burning a version of crude oil that you could walk on when it was cold 10 years ago. I mean, they had to heat it up to burn. It’s how dirty it was. And suddenly, there’s the whole notion that we want the ocean to be clean. You know, and and now there’s an opportunity to automate.
And so there’s just there’s a lot of, tech that’s finally sort of pivoting and going, oh, wow. There’s a whole market here. And no 1 has really taken advantage of it yet. On the East Coast, there’s sort of a race to build these wind farm, terminals because they’re building offshore wind. Not sure when that’s gonna happen out here. There’s a lot of technical challenges to building in very deep water. But the other items that are happening, drone technology, sensing, science, marine, you know, maritime energy just I mean, the market’s booming for it. A lot of it’s right now in the EU and in Japan, but there’s nothing to say it couldn’t be here. I saw your What were the 3 All to see in LA. LA.
Yeah. The 1 that’s up and running is all to see. And if any of you are in Los Angeles and wanna tour it, I could arrange it and then you’d be sort of blown away. It’s an enormous facility. And, the state put a fair amount of money into retrofitting the the piers and and the spaces, the fixed spaces. So it looks like a modern modern incubator space now. And you can walk through and last time I walked it, there was an aquaculture company. There was a company that was looking at different ways of doing, kelp forest growth. So there’s that science component to it. There was somebody that was trying to do carbon capture with seawater instead of air.
Water is denser than air, so you it’s a little more efficient as a cycle. I mean, some really cool stuff, that you don’t think of traditionally as as a business opportunity, and they’re all just lined up along the waterfront. There’s there’s probably a synergy to having all those different businesses next to 1 another. Was there a starting point that the warehouse It’s just a big empty I toured it 5, 6 years ago. It was a bunch of empty warehouses where in the 19 thirties and forties, they still load fruit onto ships or off of ships. And, But but that long that long That entire long long that whole I think there’s 2,000 lineal feet of waterfront, plus the buildings are all retrofitted and and sort of renovated now. And is it talking about university? The The other part of this is there’s, like, a list of affiliated with USC that was also 1 of the partners that was in this discussion on the other 1. Right. Yeah.
So, I mean, we obviously have the universities here as well. We have the technology, the talent. So how did all to see get off the ground? Like somebody starts with this idea, like how did they get the port, the county, the city, the universities? How did everybody come together? I don’t know the answer to that, but it that’s actually a great question. I’ll just say, anyway, we’ve been trying to reach out to them to sort of have this interview, and so I appreciate your offer to help facilitate that. But, I think that there was also a local foundation, the Kite Foundation, that was kind of a situation where they basically came home. The foundation wanna catalyze this. The port wanna contribute off with the facility with funding, then they go ahead and bring the state funding.
And so really that was how this kinda started as my understanding of of kind of the genesis of it. So but based on what we have out there now, it seems like something in the ballpark similar would have to be built from the ground up. Mhmm. There is an organization here that’s interested and has been looking at it, and that’s the Exploratorium Museum. Yeah. Has been has toured all to see and has talked about, you know, how could something like this get off the ground? I think there’s a lot of people noodling around the edges, but the great question is It would take some leadership, like, somebody to describes that. Yeah. Yeah. Somebody to wanna make it happen.
Know? And I think in the port of San Francisco, they’re looking at those peers and saying, god, we could turn them into class a office space. Do we really wanna do an incubator for, you know, new startups more? Not anymore. And I’ll reply. Well, let me just kind of the spirit of of kind of not having to build new buildings. When you look at the area, you know, we have the member kind of tenants right up there. 1 of the warehouses in that area west of Orion, is that yeah. West of Orion is vacant, another 1 has non maritime tenants. So to the extent, it might be more feasible to, use 1 of those buildings.
That might be another 1 too. Yeah. Okay. Go back here. Yeah. So there’s AltaSea. CEO of Alticea is actually the farmer, California EPA secretary. Mhmm. I don’t know if he want the founders, but, I feel like he would be good to reach out to him. Mhmm.
You have to take Is there something amazing, sorry, in this area that San Diego, Los Angeles, or Seattle can’t provide? Would there be a competitive advantage to having it here? Or Silicon Valley. What was that? We have the talent. So it’s Silicon Valley. Yeah. But I suspect what we have at San Diego doesn’t have is is pure space and and infrastructure on the waterfront. You know, we’re competing with Los Angeles and San Diego in a lot of markets. I don’t know that there’s something unique about the Bay Area right now.
You know, off the cuff, Seattle has, you know, University of Washington, you know, USC and UCLA have a a maritime presence in LA. I will say based on the the studies we’ve done on offshore management, you know, want to play in that market is that it’s globally, we’ve seen it’s an opportunity for just sales grama. At least it’s a $2,000,000,000 global opportunity just for what services sales are. So it’s like a $8,000,000,000 market for the globe overall. Europe, Northern Europe, North Sea and those areas are gonna be the big push right now. Europe’s obviously far ahead of most people besides, China, with the offshore energy. But yeah, we’re paying close attention to it because here on the West Coast, where that would lay out was actually just north it’s north of here. So LA and San Diego are probably best suited if you’re gonna think you’re gonna go on the offshore energy market, companies that support that field. Seattle and San Francisco support that because all that offshore energy would probably be between Seattle and San Francisco where they would focus. So that’s an opportunity.
And we’re quick to deep, you know, if you get to get to deep water, we’re quick to deep water. Mark, can you explain that a little bit more why, what specifically these new services go to Seattle makes? Offshore ends, so the off shore end, you know, big wind turbines would go out and it is deep water. So a lot of cases, the technology is to actually not be touching the surface of the ocean. It’s actually floating giant, big floating structures then sit deep on the water. Then they gotta run cables along the sea bottom, they get to shore. So there’s a lot of work that goes in supporting the, the man, the chimpanzees where we get bogged down in the United States, it says political ramifications between our parties, is do these all the studies that have to be done and so part of the service of the sales are most provided by study the we can study the seabed floor to see what the contours and all are. We can, there’s concern about what’s, whale and other fish stock migrations and again, we wanna offer services through sonar to say, okay, if you’re gonna be doing construction or you’re gonna be installing these wind farms, does it block the patterns of the whale migration, things like that? Once it’s installed, again, you wanna watch for not only now sea life, now it’s birds and bats. So now they also wanna monitor.
So there’s a lot of opportunity here. Now, also, unless it gets installed, you wanna have security. So you wanna wanna sabotage these things. And then do your transmission lines, do they get damaged? Do they get shifted through earthquakes and these kind of things. So all this stuff has constant, it’s constant maintenance, constant surveillance. So the opportunity for a company like a sales drone or any other startup or system firm to go off and service that, it’s huge market. It’s just that United States needs to kinda kick itself in black and get moving on it. But it’s a big, big market. And yeah, if it takes off, this could be 10 years from now.
There’s gonna be a lot of companies that could support that industry. And the reason it’s north is, twofold. 1 is just the environment. So there’s certain wind speeds that you need, constant wind speeds, but the bigger issue in Southern California is the military controls large swaths of offshore air and water space. And they don’t wanna see that. The US Navy is very pericule about the areas it controls. And so, south of Morro Bay starts to get kind of tricky. Okay. Okay. I understand.
Maybe off of Vandenberg. And then from there south, it Yeah. Military is basically port point Miami right around the the islands there, the Channel Island down to the city. It’s like a big no go zone except for a few shipping channels. Well, I think it’d be interesting to have a conversation with Alticea and also, you know, maybe somebody in the state to see how this started and Yeah. How if if if there’s potential to replicate it. Yeah. Because the I mean, the port doesn’t wanna have it. I understand they wanna use every square inch for a container, but is there a benefit to the port that they would sign on to support? Did it here?
Yeah. Mhmm. Given our proximity? It’s a great question. Yeah. I just got I mean, the problem with the port is the the politics. I mean, it’s it’s halfway to the city, so their interests are, you know, so intertwined with other politics. It seems like a stress to think that they would go outside of their current I mean, they have a lot of waterfront already. Okay. And then They obviously use the space.
So I think it’s a little bit long. I say the excuse. Like, if you brought in something like really like, a shipping, like a cargo type thing, and then you’re trying to factor in about the utility thing about all the public access and parks and these kind of things, you know, piers are not beautiful looking. It’s just it’s you can maybe say it’s ugly, but it’s just box steel boxes and and ships and things like that. And and then you’re mixing, you wanna go area with parks and you have a residential area and then we have the museum with the Hornet, which is really interesting. And so I think there’s a small area with a lot of, say conflicting different types of strategies. Because when I think of like the I think of just the Hornet and museum inspect, and if you think about San Diego, there’s a stage where it’s 100% about tourism, right? They have not only do they have Midway, they have all these other ship, ships, old wooden staff, sailing ships, they have boat tours that you can go on. So if you have a whole thing, it’s just geared to the tourism. Where here with the Hornet, you specifically have to know it’s there and if you go there, it’s kinda like you’re in, you tour it and you’re out, right?
There’s nothing that’s gonna keep you in this region for any reason other than that. So it’s kinda like, and then what usage you use on pier 2 and pier 1, if you’re mixing like having industrial shipping with tourism and then over at the wrong corner, you have a marina and a park, is it all, is it too much conflicting? Yeah. I wouldn’t suggest that a partnership with the port is about more container, but when you talk about drones, you know, drones and shipping. Yeah. Whether they’re moving containers or move you know, there’s logistical functions that could be interesting to the port. I mean, what changed Oakland. Right now, the port of Oakland, their big their big hole is our terminal. Yeah. You know?
Yeah. Most of A’s once the a’s Yeah. They actually have a large They just put that kinda out for for vocals recently. Yeah. So they’re in some way, looking for them in a similar situation where they have this huge chunk that they don’t quite know what to do with. Mhmm. I think the idea with the RFP is to turn that into industrial space. It seems like they’re kind of maybe leaning more back towards that. But, So anyone know the timeline for, you know, the park on the on the west side? I mean, just as far as I’m concerned slide that showed it otherwise in the park.
You know, a draw to it because like like Mark said, I mean, Hornets, like, 1 draw out there. It it can get really busy out there on weekends with I think people probably come from the long ways away actually because it’s it’s pretty cool. But that Yeah. That 1. Having that park developed would be me, it seems like it’d be a major shot in the arm to just even make a more attractive to a to a business. There’s just there’s a such a there would be such an amenity that, you know, right now, it’s just Are you asking about this park park? The park. The park? Yeah. Is that city or is that East Bay Regional?
No. It’s city, and it’s they’re they’re completing final design, but the real holdup is gonna be funding.There’s not we don’t have funding for it yet. So the next we’ve you know, our message has been no sooner than 2029, because we do have 2 buildings and tenants in there. And so they wanted reassurance about what their stability is. So that’s kind of our anticipated timeline is it’s gonna take us a couple of years to get funding and and, you know, earliest construction, 2029 or 2030. Yeah. It’s just not funded. Yeah. Let’s hope that we have some East Bay original life would be pumped in.
Who knows? Yeah. Who knows? You know? Are you seeing that as a as a benefit to the peers area as well? I I yeah. I think so to to vision? Just because, I mean, when you’re making a choice I mean, if your business is all about maritime and you need the water, that can be a deciding factor by itself, but just to make something more attractive. I mean, any business that will locates anywhere, they they’re looking for they learn from the best place and the best place for their employees and, those sorts of things can’t hurt at all. Nice.
Not to mention it just brings more attention to lehi area in general. A lot of times it’s just access to the 1. So if you’re, like, starting a new tech type of thing or you wanna do anything that if you’re using 1 of the other buildings just to manufacture something or do some kind of new cool technology and you want access to go into the water, having a way to do that is probably important too. So I’ve been almost like a public, if it’s city owned and managed way that you’d have the cranes or the type of devices needed to get your idea and your product into the water because you don’t necessarily, I have to be permanently residing water side. You just need to have that access to get you to do your thing that you wanna do and I think ways to allow for the flow of whatever, like, say, I’m gonna give you a soundness report. Right? We we need that access from our building straight into the building goods or whatever’s designed to the final designs. Right? We’d love to work with maintaining our access and that helps our business. So it’s like other billing suit.
If you were to make some kind of new gizmo, you wanted water access, that that way to provide that at a really low cost or a way to do that to allow them people to do that, that would be super important. So it’s all about the road designs and where, how you get to that access is important. Right now we have the higher discount. Are there investments, Mark, that could be and I know that there have been requests to you by other businesses as well to use some of the access improvements that Saildrone has installed. But Yeah. Are there Citi and 1 of the questions we is is sort of what investments we should, you know, prioritize to help. Well, I saw this concept here kind of like the, you know, working day gathering public Marina area, but then if you also have a space that was next maybe next to that because a working Marina has a need to have boats all now in and out. But if you had a way that was near that was more of a not from public use, but more of commercial use, but it could be integrated where you provide a get it. It’s all about the cranes and and maybe the, peers that go out in the water allow some things to be lowered into the water easily, smaller effect things, nothing really large and huge, but, that it would be part make it part of that plan where you have public access for people with pleasure boats and then you have a section that could be geared towards, commercial industries. Right?
I’m really interested in the way you can see it. And I will say having worked on kind of people with the marinas, you know, part of the challenge when you look at private boats, the whole marina business, especially the folks that’s been building marinas. That’s all gone towards where the superyachts. It’s not kind of the old days when we used to build marinas for 30 40 foot boats. It’s about much of your boats nowadays. But certainly, I think the kind of, you know, period you’re talking about, the kind of thing that’s geared for smaller vessels and commercial use, that’s something that could be potentially more appealing. Yeah. It’s just to get our small boats that chase our drones in the water. They either use the ramp, which is great. It’s great to have a ramp there or we have to go in craning or not.
So it’s the things that we had to go procure and do ourselves. So the Marriott was brought up and and when they did have their shifts there, were they paying the city for birthing at the time? Yeah. They were, our they had a lease with us that was roughly 3,000,000 a year per use of Pier 2. Did you do an ROI type study on the return on investment that you would need to justify the due to the cost of the revenue, that kind of thing, that yearly $4,000,000, you would have to have something that large to justify the offset that expense or Yeah. I think the strategy document is the attachment. In the back of it, it has some tables that not so much from a capital ROI, but just showing different signs for levels of use. And it does show that, and that kind of sort of having a challenge. And I will say with Mara, you know, 1 of the thoughts that’s occurred to us is, you know, there is federal funding for dredging, particularly for kind of port related activities. What’s not clear to us is how competitive we would be because we’re not a cargo facility as opposed to other kinds of places.
But let’s say even if you could get, Marriott here and if they could help leverage some federal funding for some of these needs here, you know, the other question to ask yourself is in terms of our goals for, you know, job creation, supporting firms, and workforce, you you know, having their shifts here is not something that really creates a lot of jobs or creates a lot of activity besides the shifts being birthed here. I think that that that ROI exercise too is what we’re hoping to update. So we’re hoping to get and this is part of Ron is kind of 40% through the study. And so part of what we’re looking for is kind of taking it in your direction to take it the other 60%. But getting the cost estimates on the peer repair is gonna be a huge piece of it. Mhmm. Understanding what our financial potential returns could be from the peers. And obviously, as Ron said, it varies depending on the goals. Our highest revenue generating use may be the lowest job use. And so then we have that trade off and then we’re seeking subsidy from somewhere else.
So, those are just kind of all the questions. And I will say, I can just elaborate on the financials here that some of you may have seen the blog post recently about the state lands trust. So, the area in green, we have to keep that revenue and those expenditures separate and invested in only those areas. And so that area collectively brings in for the city, roughly $2,000,000 a year in lease in leases. And so we you know, but that might go to other there’s plenty of things to spend money on, of course, in Alameda Point. But that’s part of the equation here is that we have the specific geography where the money must be encapsulated and spent in that area and could that be filtered into the peers for a number of years to help restore them too. So it’s still not gonna be sufficient to we can’t cover our own costs, we don’t think, but we need to finish that analysis. Mhmm. And it seems like I mean, the number you said for in bear with them here. You’re not even treading water.
You’re going under just just not the dredging side if that’s not requiring it. Right. I mean, in a lot of ways, I mean, besides something like Marana, I mean, it it’s hard for me to imagine vessels of that size making much use of this area, but that’s that’s just mining the the end of it. Yeah. And I I think that’s what we’re trying to also get our arms around is that, you know, the MERRA vessels, those are cargo vessels for ready to reserve and kind of national response types of situations. But there are a lot of other vessels, whether they’re visiting large vessels, Bay Area, you know, vessels that come here for, you know, kind of utilizing shipyards, those kind of activities. So those are smaller vessels that don’t need as much draft as a Marriott sized vessel. And that was kind of part of why we’re posing this question about, you know, what level of depth do we need to retain at the peers and attorney base in which relates to a size of ship is really gonna be most attractive. I think the question for amending again for you, Mark, about re about the research aspect, like the aspect of all the potential headitude we could bring in and whether that depth is important to them or maybe the dredging is I mean, we don’t wanna be completely silted up, but maybe the dredging won’t be a priority if we can. I’ll say this.
Like, there’s all sorts of interesting ideas on technology and military and all the climate stuff and it’s all really interesting, cool things in energy, but there’s the biggest it’s hard for those companies though to survive and so everyone’s learned this. It’s just not a lot of money. The US government only spends so much on those initiatives and they kinda plateau up. And so for companies to survive, actually we’re pivoting, you get into the defense sector. There’s a lot of spending in the defense sector. So there’s companies out there that again, that need access to the water. If there’s being successful, I think the company off hand is a company called Andruil and they’re out of their headquarters in Orange County. They are investing in submersible technologies and they’re actually they bought a company that actually is based in Boston that is doing it for them, but they are expanded massively and they’re hiring like crazy and they actually just took a person from sale to go, work for them, because they’re hiring so fast and they’ve raised so much money and we’re talking 1,000,000,000. And if you were to reach out to them and again, as a pitch to the water access and again, they do manufacturing and so you can link the water access to facilities like you do heavy manufacturing. Those are the kind of people that you could come in and justify that maybe they’re willing to help with the funding to improve the peer or help with dredging or at least, tell you exactly kind of what kind of they would be doing like big shifts.
But I think then you’re not doing the deep, really deep dredging would be important. It would be more about them being able to bring in, you know, medium sized vessels to help carry their cargo that they’re taking out like, you know, research size ships. And so again, the defense sector has a big, has the deepest pockets. So if you find companies that are doing well in that sector and need water in excess, and again, the aerospace is another 1, right near that port part of LA is where SpaceX had bought the land of an old, shipyard and they were gonna use that for their big platforms that they land the rockets on. Now he wanna move that all to another area of country, but for a while, they were gonna do that and they bought ships and they were gonna revitalize this area and SpaceX was gonna catch the rockets off of coast of LA. So, there’s a lot of other rocket companies that may come down the line and wanna copy that. So that’s where the big money is reversing. Always a lot of money to blow stuff up. Yes. Do grants still exist for base closure or are we too far past when the base closed to go back and say, we wanna rebuild this infrastructure?
You know, I have not come across any other in my 15 months on the job. I think it’s something we should be continuing to look at. I think Duane and I recently, there was a economic development designation that we are just now losing because we are no longer a qualified census track, like, the the specifically closed spaces because we lost our status as a qualified census tract. So we’re yeah. I don’t know. But I think that’s something we need, you know, to advance. I know I know Mary Anne Elliott Point wasn’t a census track. I guess we really looked at it in the past for new markets. You said new markets. Mhmm.
What’s a census track? What does that mean they’re not a census track? It it it, when when when the census is doing when the census is occurring and they split Yeah. You know, the city up into different geographies and the tract is 1 of the sort of neighborhood sized geographies that’s used. And so, for a long time, Alameda Point, because the only residents now made a point where they only put collaborative residents, we had a certain percentage. Like, the the the few residents that were there were were qualifying that particular area, for specific kinds of of grants and subsidies and tax credit competitiveness, and we lost our we just lost our des we’re gonna lose our designation in 2028, because we’ve built new housing. So It’s too many people are housing’s more expensive than good. Before we built market rate housing, so we no longer qualify as having so there are grants that are specifically designed, you know, to fit for economic revitalization or to provide affordable housing and we’ve lost our designation. So it’s it’s caused us to slip out of this the the 1 of the few, competitive sources that we know that we had available. So that’s Which that is not necessarily intuitive when you think about how much money is needed to No.
It’s develop that. Correct. I I mean, I will say just the obvious thing, which is, you know, with the new administration, when they were in off before they came up with the opportunity zones. And, again, we may run-in the qualified status track issue, but there may be new things that also come up that’d be great opportunities if they go down the same path they did before we hit the opportunity zones. Well, then we couldn’t qualify as an opportunity zone because we I thought we didn’t have a census tract designation, but I could be wrong. I don’t know if the entire all of Alameda Point was encompassed or just the residential area. I’m sure. And the the whole enterprise zone and and it sounds like they have the public trust lands are are a no go for any kind of residential. Is that correct? Yeah.
That is 1 of the limitations. We there’s a variety, of limitations in that area. It has to be used maritime or recreation. The city will own it in perpetuity, so it will only ever be leased. Yeah. It’s pretty written. Even within the civic the civic and institutional uses you could have is also very restricted. Yeah. I would say Port San Francisco’s dealt this a lot. And so, you know, they’ve gotten some commercial uses, but you have to really demonstrate with the state lands commission that those are necessary to facilitate the public and walk front access.
And they’re pretty tough about, you know, proving that that’s really the case. So it’s not an easy thing to do. Mhmm. So I think 1 of the other the other questions that we have is, you know, this this concept of extending to Orion Street. Part of the reason to do that is we actually Ethan, you said all to see was retrofitted building, right? And then to the construction folks in the room, I think there’s the question of, have a lot of land, which is great and a huge competitive advantage, but we don’t have a ton of buildings in this particular part of the state lands trust area. But we do pick up a number of additional warehouses in the if you extend east to Orion Street, but then you are So So if you extend east, would you swap space in some other part of the the of Alameda Point? Well, that that could be a question is is is when should we pursue a land swap for with the state lands commission to have a larger area designated. So there there there is the strip that runs straight down between Lexington and Saratoga, straight north and south where city hall west is. And so we’ve talked about, you know, maybe that that’s something we have done and could do is pursue an exchange.
But I was more just thinking about maritime and just having those warehouses that frankly don’t have high power. They’re not the best. They don’t have cranes. They don’t they’re lacking the a lot of the amenities the hangars have, except for yours, I think. Do you have an exhibit that shows this green area, what we’re talking about? Yes. There was a. It’s it’s a fire slide. Just go back to the fire slide. Nice.
Just ask it. Yeah. We don’t have the full we don’t Overall, we don’t we have the full map? I don’t think we have. So the Highlands Trust area Oh, no. It’s there. Yeah. Do you have you don’t have a printed copy of the the packet kind of the It’s the green in the, lower photograph. Yeah. Oh, I don’t know what that description.
Oh, 0, so it’s the band. The band that sort of touches the water, but then as you can see, it goes inland across, I think 1 of the buildings maybe you looked at. That’s yeah. Exactly. 1 of the buildings, and then as Gabby said, City Hall Westland actually goes all the way up to the so it’s a blue but not Correct. Mhmm. So we could pursue a a a student exchange. And what would be the if and the advantage of expanding this area to make it more attractive or Well, then we’re picking up a number of I mean, Ron Ron can speak more, but we would be picking up I mean, it would be detrimental to new development. So I do wanna just acknowledge the trade off is pretty like, it would have to be for maritime uses. And I think part of the question is, can the maritime ministry afford you to build the product?
Or are we talking about it just reducing existing buildings? But the advantage is we would exchange this property extending from north all the way to the estuary. And we would pick up a number of additional warehouses, which are not the best most of which are not the most beautiful buildings. Kind of speak badly in your building. Like, technically, your building. Yeah. So just pick up a couple of new buildings and also some additional like, some of these are already used for maritime use. Yeah. And I think that’s the thought. So you already have maritime uses in your company and other tenants there.
And so it’s logical to say, well, gee, you already have it happening there. It’s thanks to the waterfront. So if you’re gonna build something, that’s the area, which seems to be the logical thing to do. And I will say that, you know, the other part of the body is that when you look at the, enterprise district, you know, I think thing on how it all shows out, we potentially have something like 88 roofs there for development. Yeah. And we look at 80 acres, you know, that’s sort of a a Marina Bay kind of scale of development. And so I think that, you know, it’s a good question about how much you potentially are trading off vis a vis the enterprises or did you say we’re trying to extend things to clients here? Yeah. I would I mean, 80 acres is not a lot. If I would argue, you know, if I think of the type of development, you know, I don’t see a mission bay, You know, you need to go vertical.
If you’re but, you know, I think of r and d advanced manufacturing type uses. They’re gonna have a bigger horizontal footprint here. You know? I know the capital markets are gonna want more land to build more critical mass. So swapping some of the enterprise district for state lands, high trust, I think we really have to think very carefully about that. Yeah. And this was not a staff recommendation to be clear. This is just but also we can focus on the maritime district without doing a swap, right? That was not the swap was not the primary proposal. The the thinking was just more of focusing in this area for maritime, not swapping and putting that restriction here.
I mean, wouldn’t wouldn’t swapping more about trying to do away with that? Seems like there’s the real restriction is having that snug cut through up to city hall on the rest of the the point. And I don’t I don’t understand why that would be like that, but government? Government. Yeah. It was it was, it was there was an exchange done in in 2001, I think, or 2,000, but it does actually provide the legislation provides for some exceptions. So the building that Pike is in, which is the hangar that’s right in the green, we actually that building, the land is restricted, but the building itself is not. So that was an agreement that that was made. And then we do have obviously, we have city hall. We have some civic uses.
There’s a fire station area, but we do have land in there that that is really, I think, partly just not been invested in because of the state of man’s trust as well. Yeah. I guess I’m I’m just without looking at Right. Yeah. Here, but you’re looking at the whole package and you have a lot more opportunity to to pull in, you know, maritime related stuff down there whereas in having that cut. Right? They don’t move all the point. Mhmm. Seems like a red pain, but strange restriction. Mhmm.
Something we can consider. Like, I’m saying that without feeling the mountain of setting that path. Right. I’m trying to remember myself, but I think the first time that I’ve still saw it, I thought, well, that makes sense because it was a way to get more waterfront land not **** ** by Thailand’s trust, but I can’t remember what the trade off was. Yeah. It has the parade grounds, so and that’s historic and historically designated, so never to be developed. It has city hall west, which is serving a civic function. It has a city parking lot, so there are 7 or 8 designated areas. Whereas Alameda Point builds out, it will have shared parking lots. So that’s 1 of the areas.
There’s a fire station. There’s the old Navy, the area where the Navy uses a fire station and the fire department uses, but they would very much like to have a new fire station there, and they are restricted by the state lands trust. They cannot build a new fire station there. So that certainly has been a restriction. And then we have this old, the Navy’s boiler building, this tiny skinny building that’s been completely useless that is right on the north side of West Tower Avenue, which there is land there that could be used for something. And then Pika’s built the hangar. And then there is a swath of the taxiway where, you know, as Ron showed in the plans is envisioned for new development, but realistically, I think that would be very heavily restricted because So it may just be Parkland at some point? Unless we can find a maritime use that can build a new building. So Well, it seems like a value proposition needs to be developed that would attract investment. You know, what what in this area offer that’s unique to attract the types of entities that invested in Alticea?
You know, what what Historic stuff. Do Have you guys looked at like that Liberty Station down in San Diego where that’s where all historic buildings that built that’s turned into big, like restaurant shopping type of things. So I don’t know if that that’s getting a little off target here, but the buildings that are in those greater gray grounds, the Liberty Station down in San Diego, all those original buildings, and it’s hugely popular as far as now with people going there because of all this the restaurants, things there. And as an aside, I actually worked on that project for the city some years back, and it’s exactly as you’re saying. I think that is actually an interesting model for some of the historic properties. Mhmm. Another 1 wild card. Now that Cal Poly isn’t letting can invest in saving Cal Maritime up in Vallejo, and if they wanted to expand that, they’re landlocked and they can’t actually grow their campus. Yeah, and they get a new ship 2026 and you could get that ship could easily go to Huron Pier too and you can have move their campus here in Yeah. They’re, the federal government spending about $75,000,000 minimum peer.
So that’s Oh, there. The pier component of that is I think it’s not an existing pier. Yeah. The ship came with a new pier. So it’s just, again, the federal side of a grant. The state couldn’t afford the piers falling down. And, so 1 of the conditions the academy said, if you’re gonna give us the ship, you have to build us a pier. And that funding has already come through. For that. Yeah.
Too bad. Oh, he appears for something else as a university. It would. I mean, it would be fantastic. 1 of the advantages of expanding the maritime is would be concentrating it. Like any industrial activity, it’s not always attractive. And in some ways, it’s a bit of a nuisance. In addition to that pipe power demand, maybe they’re welding, maybe they’re coating, maybe they’re doing something else. There’s cranes running at night because it’s a title activity or something. And so it isn’t the kind of activity you wanna end up having next to residential or even sort of retail commercial.
If the enterprise zone goes all manufacturing, it’s a perfect fit. But if for some reason housing were to start creeping into that enterprise zone, I think it’d be very difficult to run a a start up sort of a marine business next to it. Mhmm. I think that’s really important, like from a policy perspective, right? The city has held the line on housing in this area. As we’ve discussed, there’s been conversation about not holding the line. So, yeah. It sounds like universities are an appropriate type of, entity to approach and talking about UC Berkeley, Cal Poly, Sanford. I mean, UC Santa Cruz. I don’t know if they have would have any interest in moving up this time.
California Community Colleges don’t have a lot of money, but a great interest in climate. They’ve started a Climate Institute. The, state chancellor’s office has always sent me out newsletters about workforce development being, the strength of the community colleges that are willing to focus more on, really at the Climate Institute. They have fellows, doing research. There may be some connection at some point. Mhmm. Mhmm. Possibly another partner in that grouping. Well, I I heard a couple of things as we go forward. And Ryan, I don’t know if you heard heard others, but I think we need to kinda focus on the ROI aspect.
Really, I think deep dive into some possible kinda you know, some possible additional parties that might be interested, look into the grants, which we already knew we needed to do. I think there are a number of potential partners around the region that we’re gonna continue to investigate and talk to all to see about kind of how they got their momentum and see if we can find some equivalent champion here. And I’ve heard mixed things about the notion of spending, but I think holding the line on residential to make sure you really are invested in the working waterfront is an important concept. That I’m missing. But continuing to build out the amenities at Alameda Point to just generally make job attraction and work, you know, just make it a nice, a better you know, work environment for potential businesses. Food. More food options. What? More food options. Please.
Yeah. Yeah. Please. I’m really looking for the more Yeah. Okay. Just let’s see if they’re saying the right response. Oh, yes. So we’re coming. We do have a participant. Yeah.
Keith, did you wanna, speak? Are you still there? Got them raised. It’s good hand raised. You have done yeah. To talk. Go ahead. He’s on mute. He’s on mute. He’s on mute.
Sorry. There he goes. He’s got it. He’s gonna unmute himself probably. Sorry, Keith. You’re gonna have to unmute yourself again. How’s that? Perfect. Alright. Hey.
Great conversation. You know, having done, quite a few military base reuse projects myself, and in including industrial locations like this 1. You know, I really, you know, there I think there is an opportunity to add some housing in the enterprise zone, not near the waterfront, but near the existing residential areas, and, and snow launch, area that could help pay for the infrastructure that you need for the maritime uses. So just keep that in the back of your minds. I know it’s it’s an awesome place for industrial use, for the creation of maritime jobs and all that. But I think, you know, funding for all of that, listening to you guys talk about it, I think, is gonna be very challenging, unless you get major government subsidies, state and federal. So I think and that should be a definite, you know, target of finding sources of money. But I think, realistically, adding a bit of housing in that location could help spur a lot of infrastructure development. So just point 2¢. Thank you, Keith.
Yep. I have another question on the the the, parking lot for ferry. Is that intended as kind of a temporary situation as it is now? Or Yeah. As it is now, yes. I think there is, well, 1 of the shared parking lots would be in that area, but that parking lot in particular is is is temporary. It is intended that that area would be for development. And I think that’s really more in the waterfront. So that’s sort of on the boundary of the waterfront town center area where we’re talking about more dense mixed use development. Are there any other questions?
No, but that ferry station has super has become very vital to a lot of employees, or us, that live in the city and the younger, a lot of younger folks, a lot of engineers, software folks that live in the peninsula side and they take that ferry and it’s super convenient and allows us to actually get staffed because getting people who work in Alameda is challenging if they’re driving in because, you know, you guys don’t traffic getting off 880 into the island is it’s got challenges. So that ferry station right there, it’s super important that it remains and super favorable. I’ll I’ll second that. Yeah. All of our city employees carry in and take their bikes and Yeah. It’s an amazing convenience. The perks, free snacks, free coffee on the boat. Free transit passes too. Hopefully they all take it. Are you not on your list to look for family?
Is that what I mean? Yeah. I think we need to do some scouring for whatever possible subsidy sources could be. Mhmm. Yeah. Have we addressed the questions you wanted for the discussion, Abby? You wanna look at that? We should go back and just take Eric, can you just pop up the questions? The questions again real quick. It was the last page.
I would say a bullet too, that we wanna touch on a little bit more that implementations for maintaining the different depths is that goes without ROI I think, because if you really would want to maintain a 40 foot for large ships, you really have to know that you’re gonna get frequent enough business to support that cost. Right. So it’s like, it’s that ROI and then fixing up the period following rates. Which doesn’t seem like it’s ever gonna come from just burning a ship long term. It seems like it’s gonna require a lot of turnover, which is we’re gonna almost seems farfetched to me that there’s a vessel coming in and out of there, David. Yeah. Of that size. Are there any questions we should be asking that aren’t on this list? Let’s back out of the screen there. So Keith and others.
I mean, again, what does this region, this location have to offer that would attract an incubator accelerator, attract a public investment, you know, or a education institution type investment? What is the value it can offer that other locations can’t? Well, having gone to Maritime Academy, I Later. Still have better locations. Right? I was thinking my son’s there right now, so I’m thinking this would be closer to him. He could Yeah. Yeah. It was it would be an awesome location. It’s probably gonna happen.
That’s that’d be where is the mayor of Tamakan? It’s in Vallejo. Right. Right. Yeah. Bridge. The cartoon is a ranch here. It’s under the cartoonist bridal. It’s Yeah. It’s down there where the troll is.
No. It’s Yeah. And And the night you’re gonna be an expert at this? What happened to that aquarium thing that was planning to come here? It’s hopeless. I’m not sure. Remember there was there was a talk about having that organization come here. Is it not coming here at all? I don’t think so. Okay.
Getting there? This is really challenging our Yeah. Our technical, capabilities here with this touch screen. Sorry, Keith. It’s he’s trying to risk Hanigan or is that old? You can see it up there. It says view. The green bar. Okay. There you go.
There you go. Do you wanna see Keith? Yeah. Just can you hear me? Yeah. Yes. Yeah. I I would say it’s kind of a kind of a question, but I would add to, to the city as a question. What is the process for, once you you identify some maritime users or blue tech companies, you know, identifying a clear and succinct process for getting them, operational, I think, would be really important. Yeah.
Yeah. Because it you know, Alameda Point’s a pretty complicated place to set up an, a company, I’m sure, you know, plus there’s all the infrastructure, etcetera. So I think just outlining how long it would take for for folks you might be interested in, attracting there to to assure them that, you know, hey. If you come here, we’re gonna do whatever we can do to make it happen as quickly as we can. Yeah. And 1 of the pilots that we’re gonna be working on is, you know, Bayshipping is doing we’re talking with Bayshipping out about potentially doing a master license for the peers so that they can then the the they can bring in smaller tenants over time who can’t who don’t wanna go through the city’s reemoral or have the city’s insurance. They’ll they’ll they’ll make the process a lot more streamlined because they constantly that’s not a long term strategy. It’s really a short term strategy to activate the peers, but, they often have short term users who are coming and then asking for a place to birth and they Mhmm. They have no space to offer them. And so it would it would give a streamlined path to getting folks in and out who maybe give 3 days notice, right, where it would take us several weeks to get that process done.
So that doesn’t solve for the long term kind of job creation, longer term tenant who might be building something or leasing, but it does it’s a it’s a start. It’s a place to start. So we’ll be we’ll go back and continue our research and, you know, if you all are interested in an update, we can give you 1 way around the back end, but I think the the bottom line of kind of next steps is figure out our cost estimates for repairs, identify an investment package, and start, you know, start making invest you know, possibly going to council. It depends on kind of what we end up with, but start making some investments and improvements. I think the worst case scenario is the peers fall off into the bay. So that’s what we’re trying to avoid first and foremost. But and and, Mark, I think we heard you on some other possible smaller scale investments in terms of being able to get cracks in and out of the water that could be a pretty low hanging fruit for us. So, you know, we’re just trying to get a capital investment plan together for Allamade Point specific and maritime specific uses. So that’s kind of where we’ll end up. If you don’t want us to come back, we’re happy to come back.
Kind of gets to 1 of our future agenda items on this meeting. But, yeah. In addition to the structures out there, the utility systems are failing, or have failed. And there’s, there’s a alternate structure that rims most piers called a fendering system. And it’s actually not there to protect the ship, it’s there to protect the dock. And the fendering systems on these navy piers were timber, and they’ve pretty much rotted away. So you don’t have an effective way to fend their ships off the dock. Mhmm. And so if you decided you wanted to lease if you had an opportunity to lease your ship, you’re gonna have to provide temporary power, temporary water, and you’re gonna have to put some sort of a temporary fendering system in. That’s just something to factor into the cost of looking at an option.
If you had someone who said, hey, I wanna mow a a survey ship, you know, a 300 foot survey ship for the next 3 months there. You’re definitely gonna wanna pass those costs on to them as part of that. Otherwise, you’re gonna incur some pretty hefty expenses. Yeah. And and that’s actually the fact that you’re doing that’s a good example of some of the repairs that have to happen, but connectivity. And so that’s part of what we’re looking at is what is that potential for revenue for a senior minor cost does that. Even if you don’t fix the docker dredge or anything, you you can’t lease those repairs as they exist right now. Mhmm. Just 1 other Yeah. Thank you.
Very helpful. K. If there’s nothing else, this item was just for discussion, so there’s no action required. If no 1 has anything else, we can move on to the next agenda item. So agenda item 6 b, which is to nominate and elect the mayor’s economic development advisory panel chair and vice chair. Are there any public comments? That our APSA should be Okay. Well, it’s not fair to Gia, but she can’t. Is this for the upcoming calendar year? Is that It is.
So this is actually a 4 year term, that would start in the new year and would end in December of 2028. Who’s the vice chair now? GF. GF. Oh. What better term limits for We’re in the positions. If limited to 4 years, could you do I think, David, I mean, we were kind of like a little bit on the quiet side after the pandemic with. So now we get an action. Does anyone wanna nominate or does anyone interested in being either the chair or the vice chair? Your obligation is to meet a couple of times a year, minimum once, I think, but a couple of times a year and there’s some prep.
But beyond that, it’s just another member of the panel. It sounds like you’re we’re taking the question and we’re splitting it. So first nomination is for the chair and the second motion would be for the nomination for the chair. Correct. Would you like? I wanna turn. I think the question first is does anyone else would would anyone else be interested? You’re doing a great job. There was a resounding silence. Oh, goodness.
You’re doing a great job also, Steve. I mean, I enjoy being a part of this panel. I enjoy working with all of you. Yeah. I think it’s interesting that we all come from different backgrounds and the topics are varied today happen to be something of personal interest. But oftentimes, I find myself learning a lot because I don’t know anything about the topic. And so, I just say I’m kind of happy to be on the panel. I know you’d be happy to be the chair. Can I nominate you to continue as the chairs? Yes.
I second that here. Yeah. Good. Does anyone anyone wanna be the vice chair? If Gia doesn’t wanna do it, I would do it. But very well, I think it’s up to her. Yeah. My tour would be the point and chairs. That’ll be perfect. Yep.
Yeah. I’m not sure when Gia’s coming back. Yeah. She’s off for at least a month. Yeah. At least. At least. Be the vice vice chair. And she expressed I think, I think, have you talked to her? I think Becca will be an ideal vice chair.
Can we perhaps, make a motion and vote on the chair and then reach out to Gia to see her thoughts on whether or not she would like to stay on? And then if she doesn’t like us stepped up and yeah. Yeah. We’re happy to. Can we do that, Eric? Yeah. If there’s an ocean map, and there’s no chance. So tell them, do you wanna be vice chair? So then we can always we could we could vote now, it sounds like, for either Julia or Becca. Yeah.
Okay. Is there a motion to have Becca be the vice chair? Well, I don’t think we voted on the first pass. All those included. Aye. Any nays? Okay. So the first motion passes. On the 2nd motion for vice chair, is there any discussion or nomination? I nominate a second.
To have a second. Yep. 2nd. All in favor? I favor. So the second motion passes. Yay. I think Jill would be interested in that. Anyway, she said Yeah. I was in the Navy, and the joke was that Navy stood for never again volunteer yourself.
Well, thank you. With that, the, last item is a recommendation to approve the 2025 EDAP meeting schedule. And I think the only meeting that was listed was in December of next year. Is that correct? Yeah. We’ll handle regularly scheduled meeting. The question is, if you wanna have another meeting during the year that’s best to kind of put that on your calendar now. Also related to that, we’re looking for is there any particular topics or issues that you wanna discuss in future? I know it’s a great idea to have a second meeting at the end of the year. I just wanna clarify.
There’s only 1 meeting? Well Listed 1 meeting. Listed 1. In the, in the pack that was handed out, there was a meeting, listed for December of next year. And I reached out and asked. And so right now there’s only 1 scheduled meeting unless we want to have more. I think we should with the discussion that we’re having with maritime and enterprise district. We should have a second meeting during the year. Yeah. I agree.
Yeah. That gets pretty stale if you’re in the app. Yeah. Otherwise, it’s a big disconnection to where the whole system is. Yeah. I thought we met quarterly, so I didn’t understand. I feel like we should meet quarterly if everyone was feeling good. I think it’s a great idea to meet quarterly too. But once we find solutions and brainstorm things, we should meet quarterly. Better to set quarterly.
And if you need to cast, we can cast Yeah. Yeah. It’d be fine with us and And the chair and the vice chair are good with that. So So do it. Solicit your feedback as well on what Yes. We have our own ideas about what to bring to you, obviously, between but what what other topics you would like to see us bring? Just have a quick question. So we are appointed and we meet, at the pleasure of the mayor, as I understand. Is that correct? Sorry.
I there’s no clear limits to, your position on the board. It’s a lifetime appointment. Lifetime appointment. We gotcha. No. It’s a lifetime appointment. Is this a mayor I think the benefit is we bring pretty kind of important policy questions to you, such as, strategy, different strategies, how many point are data pricing that appears. We don’t know what’s on the horizon unless there’s topics that you know or would like to talk about that will schedule for, a quarterly basis, to complete the agenda. But, it’s set as under the rules and procedures of meeting at least once a year. Right.
And so I’m opening up to you, all of you, if you want to meet more. The difference between having a regularly scheduled meeting is we get all known about it. And, the noticing is, I think, 10 days of scheduled meeting is just technicality. It requires, more lengthy public notice. It sounds like the group would like to do quarterly. I I think that’s a great idea to do quarterly. So far, I made it out. I just wanna make sure that the mayor or the council actually gets benefit from our discussion. Yeah. So so for this so for the enterprise district discussion we had in August, we then subsequently brought that to council and brought your recommendations, which hopefully you all saw.
Mhmm. For this topic, we haven’t really the topic we just discussed, it’s been a little more amorphous in terms of what the deliverable is and what will go to council. Council in some way, shape or form, even if it’s just the budget and investment. Because we’re on the cusp of doing a 2 year budget, which was the thinking. So I think generally we would try to feed what you all are speaking about into the policy discussions going to council. And if we are bringing a major policy item to council, we wanna bring it that it’s about economic development, we wanna bring it to you first. So for example, Dwayne has been working on a lot of work around vacancy strategy and small business development that’s gonna need to go to council that we’d like you to preview. Mhmm. So yeah. Yeah.
I would say I mean, it it isn’t I think the benefit of having this group is that that it’s just this group. So so it’s not often that that that as a city or as a staff, we would have access to the the collective kind of intelligence and the collective experience that this very group has. So I think, I mean, for us, it’s a huge benefit Yeah. When we’re talking about kind of Yes. It is. Policy and and and direction to go and to say, well, we can we can talk to CEOs from a a lot of different, you know, breaths of of the business community right here in this room. That’s huge benefit for us, I think. Okay. Great. Yep.
So so motion to make quarter. Like, do we have to make a motion or do we have to make a motion? Do that? How does that work? Maybe quarterly. Okay. Is there a motion to be quarterly? I’ll make the motion to be quarterly. I’ll second. All of us will second.
Okay. All in favor? Aye. So so, we’ll go ahead and we’ll contact you through email about, confirming the dates Okay. On a quarterly basis. I think in order to support the city, I like the policy that you’re coming to us with questions of interest to you. Yes. And then periodically, maybe get some feedback on things we’ve talked about. But I like the notion that if you have an issue with, vacant spaces or something, and you wanna pitch it to us, I don’t know how everyone else feels about that. It’s a good idea.
It’s a grama idea. Good idea. Because we’re I think I think 1 of our roles is to be of service to you, the city staff, and then by inference to the city council and the mayor. The other I think the intent to, when Gallo’s created is that there’s might be some policy issue moving on the horizon that we’re not aware of. So if there’s anything that you think that’s on the horizon or that brings to our attention, let us know. Okay. And we did, you know, we did put that into the staff report for this. So if you do have ideas right now, we’d really like to hear hear that if there are things you’d like to hear us from us. We we’re happy to set the next few agendas, no problem, but we are definitely interested in your feedback. If there’s nothing else, then, we can move on to the last agenda item or second to last, which is staff communication.
Oh, that’s me. Not you. Sorry. It’s a price district update. So, you know, as I mentioned, we we did meet in August on the enterprise district update. Thank you for your feedback. It’s really, really helpful to discuss it with you and it definitely influenced what we proposed to the city council. And that 1 of the very specific things we put forward, several kind of kind of pieces. I think 1 was about marketing. This group talked a lot about the marketing and and how we are getting out the word and momentum about the enterprise district.
But the second was really about encouraging flexibility. And so what we brought to council was a set of very flexible parameters, really laying setting for what, what would what would go into a future solicitation for a developer in the enterprise district. That was really 5 or 6 kinda key points. And those, that, you know, did, the council did give a little bit bit of feedback. I think generally they were accepted, you know, that it was you know, we were looking to be opportunistic, to move more quickly, to be nimble, focus on treat this like almost like a private sector kind of process. But be very clear about what the, the guide the guideposts are for this future development and that it is the zoning, that the zoning is what the guideposts are. That really that that’s the city’s already established what it wants. And so generally, I’d say it was accepted by the city council. The 1, objection or feedback they had for me was I did try to kind of put in something really around job density that we would be looking for more job intensive use. And I proposed specifically no less than a 1000 square feet per employee, which was not received very well.
So that has been eliminated. And so, with our broker, Cushman and Wakefield, we are looking to host, the enterprise district, and start marketing aggressively in January. And so we are getting all of our data together into a shared drive that you know, so any developer who’s interested can access really the depths of information we have. Simultaneously, we have received an unsolicited proposal that, this month that we’ll, we’ll be taking to city council on January 21st in closed session to consider whether if it’s something they wanna pursue. I don’t feel I I can say much more. I know a number of people in the room are also have some relationship to the unsolicited proposal, but that is and and and many of you may have heard about it, but that’s something that will be coming up. So in parallel, we’re gonna run the competitive process and and evaluate with the city council whether they wanna pursue the unsolicited proposals. So, that’s kind of just a status update. And, depending on how things go at our Q1 meeting in January, we can give you another update on where things stand. Thank you.
Item 7b is you, Eric. Okay. Great. So you pivoted, I’ve been planning for our annual, career and job career. We’re at Encinal High School. We’re in Jersey High School Students. We talked as and spoke about it today about workforce development and getting new people aware about maritime industries. But this is a great opportunity. It’s really mutually beneficial for both high school students and for employers. The, students get great work experience.
You know, employers that are, have summer internship programs as opportunities to apply and learn about those internship opportunities. And employers, get to meet, like, the next generation workforce. We, at the city, have had some interns for the last few years. They’ve been great working on really intense meeting projects, researching for carotene income. We had 1 student who had this interest in data analysis I’ll put a snippet of responses from 1 of our surveys. We created a PowerPoint presentations. Others have helped us with flyers, promotional materials, social media. It’s just the experience of the youth there is just really broad. And they’re really looking for work experience. So it’s great.
If you have internship programs, it might be a good place to have a table at the end. The other thing that just 1 mission that we have with high school students is it’s really inspiring at 4 years. I’m just gonna put that bucket. Thank you, Eric. Agenda item 8 is panel member communication. That’s non agenda. Does anyone have any other topics they wanted to bring up tonight? No, but I have to since we’re announcing March 26th, March 20th is the State of the City event at the Penumbra location. It’s already confirmed with the venue, confirmed with the mayor. Lawyers are ready.
We’re gonna stop sending them out in the next couple of days actually. So saving your seats. March 29th? March 20th, Thursday evening, 5 to 8. It’s state of the city with the mayor and it’s gonna be hosted at Penumbra in Harbor Bay. K. How many people do you sell? We normally get the 320, 340. We can’t have more than 350 there, but between 20, 340, we didn’t get. I would love to go.
Absolutely. I’ll send you the information. It’s a nice 1. Yeah. It is. Yeah. I have a question for you all. Is there a thing on, the transportation? I I don’t know the gridlock and stuff like transportation. Oh, the open window.
Access project. Yes. Is there an update on that or have they So so the the, yes. The Alameda County Transportation Commission met again on December 5th. And as far as I know, then the California Transportation Commission met with allocating the remaining funds. So, our understanding is that they are looking to award their construction contract by March, and then could begin construction in May with the closures beginning in July, August. So we’re continuing to work with them and advocate. They are making efforts to try to reduce the Posey tube closure from 18 months to 12 months. Mhmm. And we are working with them on communications.
I think there’s definitely a bit of wake up call on their end about lack of communication. And so we are and anybody who would like to engage on this, please reach out. We are very actively engaged with them. And it’s been we were very clear in our comments, the city of Alameda, that we would like them to get the word out about this. We don’t want them to go dark until the construction starts. We would like them to actually come and communicate to the, not just business stakeholders, but the community at large in early 25. And their meetings are open for everybody the 1st Monday of every month at 9 o’clock? Was it mine? 1st Monday at, I think it is moved to 10 o’clock. It’s 10 o’clock, yeah.
If anyone would like to. Yeah, lehi just share the link and they can, everybody can jump in on that. This is a meeting with Alameda County Transportation Commission to get updates. Anything else? Eric, is there any oral communication from the public? Doesn’t look like it. Can I see your email? No. Okay. So With that, this meeting is adjourned.
Time is 751. Thank you. Thank you, Andrew. Welcome. Here you go.