Second Amendment to Lease for
2501 Monarch Street, Suite 200
with Faction Brewing LLC
March 19, 2024
2501 Monarch St, Suite 200: Background
• Suite 200 is approximately 32,500
square ft. of space in Building 22, a
historic hangar along Spirits Alley at
Alameda Point with two suites
• In 2012, Faction became the first
brewery at Alameda Point, entering a
5-year, 3-month lease with the City of
Alameda (City)
• In 2018, Faction and the City entered
into a new 10-year lease that includes
two 10-year extension options
Background (cont’d)
• In March 2020, COVID-19 and Shelter In Place Order had major financial impacts on businesses like Faction, who rely on revenues from tasting room sales and events. • In October 2020, Faction and seven other Spirits Alley tenants received assistance through a City Council approved rent deferral and relief program:
• 9-month deferral
• 3-year repayment
• Tenants eligible for up to 6 months rent credit over the 3 year repayment period if repayments made on time Faction repaid deferred in 12 months, two years early. • January 2024, Faction proactively approached City requesting 3-month deferral • Deferral would help offset compounding financial impacts from short summer, wet winter (2023- 4), rerouting of traffic for road infrastructure improvements, and concurrent Property Taxes, Storm Water Utility Fees, and Flood Protection Fees.
• Faction anticipates significant increase in revenues when business picks up in warmer months Current
Proposed Lease Amendment
• Proposed Second Lease Amendment:
• Deferred rent period: February-April 2024
• 3 months of Deferred Rent: $70,078.11
• Repayment period May 2024-April 2025
• Repayment Schedule: Base rent plus $5,839.84
per month until repaid
• No interest payments
• Faction anticipates seasonal increased
revenues, enhanced by Spirits Alley
marketing, partnership with St George’s
for Head West markets, and other
scheduled events.
Photo: Indoor Market at Faction
Introduce an ordinance authorizing the City Manager to
execute a second amendment to the Lease with Faction
Brewing for a three-month rent deferral and subsequent
twelve-month deferred rent repayment schedule.
Staff Recommendation