Late last year, the City of Alameda received four proposals from developers for the site and began to negotiate key business and financial terms with two finalists.
However, according to the staff report, those “developers were not willing to commit to upfront infrastructure, land payments or a milestone schedule for implementing development due to the uncertainty of the commercial market in Alameda and the high cost of infrastructure.”
Now that the 68-acre mixed-use “Site A” project, which includes 800 housing units, is underway after City Council approval, and there is greater clarity on resolution to some of the infrastructure questions at Alameda Point, such as sewer line replacement, city staff are recommending a shift in approach for the second parcel.
Afraid of “stigmatizing” the Enterprise District parcel by re-issuing a request for proposals, staff recommend instead leveraging Cushman & Wakefield, a leasing agent the city already works with, to target end-user tenants to draw them into commitments to take space within the parcel.
With enough, or the right, commercial tenants, the City of Alameda would have a basis upon which to go back to the prior two finalists for the site, and re-engage those developers to build-out according to tenant needs.
The new strategy would leverage media “buzz” around groundbreaking and vertical development at Site A to attract commercial tenants into discussions regarding space at the second parcel.
Marketing of the Enterprise District would peak as infrastructure efforts at Site A are completed, and tangible.
City Council meets to discuss the item at 7pm on October 6th, in council chambers at Alameda City Hall, 2263 Santa Clara Avenue.