FACTS AND ISSUES

By Doug deHaan

FISCAL AND ENVIRONMENTAL SUSTAINABILITY

CONVERSION OF ALAMEDA POINT: For the past eleven years, The City of Alameda has actively been engaged in the process of the conversion of Alameda Point for public use. In the last eight years the city has been involved with two different master developers. During this period the city has bonded over $15 million in support of public services and the conversion planning process. The present cooperative agreement with the Navy and our inability to generate enough lease revenue is costing the City General Fund $1 million to $2 million annually.

I believe the city must maintain the present city/master developer Exclusive Negotiation Agreement (ENA) timeline. This has been very difficult during the present turbulent national fiscal crisis. Our challenge has always been to convert Alameda Point with zero fiscal impact (fiscal neutrality) to The City of Alameda, while fulfilling the community's goals and expectations. The city must make sure that the community is fully engaged in the process and understands all aspects of this complex redevelopment project

AP&T TELECOM BUSINESS: The city is currently in the process of determining the disposition of AP&T's telecom business. In February of 2006, AP&T lowered their telecom sales forecast for FY2009 from $15.2 million to $8.3 million (a decline of 45%). The telecom business had incurred over $80 million of debt, which included (to date) a $44 million inter-departmental transfer from AP&T's electrical operation to the telecom operation. In March of 2006, I requested a closed session (business sensitive) meeting to mandate that AP&T conduct an operational review and market appraisal of the telecom business. This review provided AP&T and the city with the necessary information and data to determine the fiscal viability of the telecom system and develop future funding and operational strategies.

AP&T ELECTRICAL BUSINESS: The electrical business is thriving! The city must continue to use the electrical business as our showpiece for environmentally sound electrical services. AP&T's outstanding environmental efforts have been in place over the years, and they have recently renewed their commitment. Congratulations to AP&T and Public Works and our Planning Department, as they have continued to take the lead in the City's environmental sustainability program.

CHUCK CORICA GOLF COMPLEX: The recent downturn of economy, ongoing surcharges to support the City's General Fund, and loss of golf play have had a significant impact on the City's Chuck Corica Golf Complex operating budget. In May of 2006, during budget hearings, I noted that golf play on our courses had dropped over 30% to 50% in the last 10 years, and that council needed to conduct an immediate operations review. Over the last year the city has taken significant steps to improve the complex's fiscal viability, but we still face some key challenges. I will continue to support the city's unique asset, and will ensure that it has an ongoing future in our community...because once it's gone, it's gone. I will not let it become another developer's dream.

CITY OF ALAMEDA OPERATING BUDGET: Alameda is now at an unprecedented junction in its history. Due to the country's economic/housing spiral, Alameda is facing its own budget crisis with a decrease in revenue, while trying to maintain quality services: Fire, Police, Parks, Library, Schools and Public Works etc. Alameda is faced with a projected $5 million shortfall in the General Fund for the fiscal year. To further compound this problem, it is projected that the property tax revenue will most likely be flat for the next four years. The city presently has an Other Post Employment Benefits (OPEB) liability of $75.4 million that must be addressed and funded. All California cities could be further impacted by the proposed State budget recommendations to divert our City Property and Transportation Taxes, and Redevelopment Funds to the State level to cover its $15 billion budget deficit.

The city must maximize ways to increase our sales tax revenue by increasing retail opportunities within our retail areas, without unnecessarily impacting our existing retailers and traffic corridors. Within the next six months we will be losing the Toyota dealership to Oakland (annual $350,000 sales tax). Replacement sales tax is paramount! The city needs to look at companies that can generate business-to-business sales tax.

RETAIL AND RESIDENTIAL REDEVELOPMENT OPPORTUNITIES: RETAIL: Alameda Towne Centre, Del Monte (Encinal Terminals), Alameda Landing, Northern Park Street Strategic Plan (North of Lincoln), Alameda Point (Retail). HOUSING: Harbor Bay, Collins Property (Clement and Oak), Alameda Landing, Encinal Terminals, Grand Marina, Northern Housing (old Coast Guard Housing), Ballena Bay.

Present entitled, planned and proposed development projects provide the City of Alameda with many opportunities. There are over 1,600 additional housing units (excluding the proposed Alameda Point's 1,800 to 6,000 housing units) and up to 1.2 million square feet of new or existing retail spaces. There is also 1.2 million square feet of office/commercial, vacant and planned (excluding 3.5 million sq. ft. planned at Alameda Point) projects. You can see the magnitude of opportunities/challenges that are facing the City of Alameda. The city must seamlessly integrate these development projects into the existing infrastructure, transportation and traffic, while maintaining the communities core values. We have set in place many review processes to ensure this is accomplished. However, we must be vigilant in seeing that these projects interface with each other. We only have ONE opportunity to do this RIGHT, not to repeat past development/redevelopment oversights. Our challenge in the next four years is to build quality that we can enjoy now, as well as proudly leave this legacy to future generations. Don't forget, developers work for us. You can rest assured that I have never, or will I ever take funding (directly or indirectly) from any developer(s). Council members must remain impartial while providing the leadership and resources needed for Alameda to succeed. Of the 72,000+ residents in this city, I have yet to see more than a few hundred residents at the most (usually the same groups) directly engaged in the community process, which will formulate Alameda's future. This is YOUR city and you need to get involved. Therefore, the City Council's outreach to our citizens for input is most vital.

TRANSPORTATION AND TRAFFIC: Transportation/Traffic is one of the main elements to be considered in existing and further development of Alameda, but Alameda must have growth that fits. Many transportation experts agree that most new estuary crossings (bridges/tubes) are cost prohibitive and we might have to continue to rely upon private vehicle use. Future estuary crossings, using alternate transportation forms could include a bus barge and/or water taxi, not very efficient. SunCal, the Alameda Point developer, proposes an elevated transportation system Personal Rapid Transit (PRT) that utilizes the old Beltline Railway right-of-way down Atlantic Avenue, to Clement Avenue, and over the Fruitvale rail bridge to Fruitvale BART and/or that goes over the estuary to West Oakland BART. The PRT would rely upon tens of millions of dollars of Federal and State funding and additional right-of-ways. This may take at least twenty years to become a reality, if ever. Our best sources are improved bus service, not only Transbay, but point-to-point services and the expansion of our existing ferry services. AC Transit has proposed a Bus Rapid Transit System for the East Bay, but this system has yet to be built or funded and does not include Alameda. We must require developers and the city to look into the feasibility of having an internal bus system (shuttle) that services the community and the use of an eco public transportation pass system. When the community is developed, we must ensure that there is a balance of jobs to homes with supporting retail/businesses and accompanying open spaces. Exploration of traffic mitigation plans should include combined infrastructure improvements, such as, links to public transit and shuttles, walk-to-work and bike-to-work options and adjacent housing. Emphasis should be pursued on retail nodes very similar to the old Alameda railroad stations i.e., Bay Station or Chestnut Station retail districts. Alameda is fortunate to have a flat terrain.

To assist in developing a comprehensive transportation plan, the city is in the process of updating the Transportation Element of the General Plan (Transportation Master Plan). Additionally, the Oak to Ninth project and future proposed Oakland developments would only further impact our critical access corridors (tubes and bridges). The Oak to Ninth EIR showed a direct impact to Alameda's Atlantic/Webster Street and the proposed Atlantic/Stargell intersections. Alameda's capacity to our tubes and bridges will be further eroded, thus directly impacting the development at Alameda Point and the West End.

ECONOMIC DEVELOPMENT COMMISSION INITIATIVES: The Alameda Theater Complex has been very successful in the economic rejuvenation of the downtown Park Street district. This is exactly what our Economic Development Commission (EDC) and City Council envisioned. I served on the EDC for 8 years, and I was chairman for 2 of those 8 years. All of the redevelopment projects were conceived during this time (Park and Webster Street, Bridgeside Shopping Center, Towne Centre, Alameda Theater, and the ongoing development of the Harbor Bay Business Park. One of our assignments was the Theater/Cineplex and Parking project(s). In1999, while serving on the EDC, we conducted a Downtown Visioning Plan for Park Street, which addressed the renovation of the historic Alameda Theater and supporting projects. The direct outgrowth of that visioning process was the historical Theater/Cineplex and parking structure proposal(s). As chairman of the EDC, I personally lead the EDC (over a two-year period) in developing our final recommendations. I strongly supported EDC's recommendations that were forwarded to the Planning Board and City Council for action. Once the recommendations were forwarded, many of the conceptual elements of the Theater/Cineplex/Parking Complex were finalized in closed sessions before the public had a chance to review and/or comment on the EDC's original recommendations of parking locations and Cineplex requirements. I was not a councilmember during this period of time. The initial cost for this project had been estimated to be $16 million, and ballooned to a final cost of $32 million, excluding $3 million for preliminary development costs. The council had to apply for a $7 million Housing and Urban Development loan and reallocate redevelopment funds to make it a viable project. When I became a councilmember, I personally took strong exception to the high cost and size/mass of the overall project, but I always supported the renovation of the grand old theater. This project could have easily still been successful at a substantially lower cost. Did you know that we have one of the most expensive parking structures (per space) in the Bay Area, including San Francisco ($33,000 for each parking space)?

FISCAL AND ENVIRONMENTAL SUSTAINABILITY: Our Planning Department's Climate Protection Task Force was recently recognized for the completion of Alameda's award-wining Local Action Plan for Climate Protection. This will set the future benchmark for Alameda's Environmental Sustainability. A newly formed Blue Ribbon Fiscal Sustainability Task Group has been established. The group is made up of local citizens who are professional experts in their field. This Task Group will review all aspects of the city's budget in order to evaluate current and future budgets needs.