Introduction of Ordinance to Approve
Lease for Building 41 (650 West Tower
Avenue) with DOER Marine
Operations, a California corporation
September 3, 2024
Building 41: 650 West Tower Avenue
• Located within the Waterfront Town Center Precise Plan near the entrance to Adaptive Reuse Area
• Highly desirable building, adjacent to new infrastructure installed as part of the City’s Master Infrastructure Plan • City Council direction is to plan for eventual sale, leasing is an interim use as the building has not been fully
conveyed by the Navy
Natel Energy
• Building 41 constructed in 1945
• Open layout, 50’ clear height
• Approximately 118,041 SF in total
DOER Marine Operations (“DOER”)
• DOER relocated to Alameda Marina in 2003 and
then to Building 41 in 2017
• DOER currently occupies a portion of the building
under an annual License with City
3 • Building 41 houses office space, fabrication
workshop for prototyping and assembly of
undersea marine vehicles, space for
educational activities, and retail dive shop
that services and repairs equipment.
Deep Ocean Exploration and Research, marine consulting firm founded in 1992
Use: Warehouse, beverage distribution, food grade equipment leasing, maintenance and repair, beverage bottling, and retail fountain bar
Premises: Interior space plus non-exclusive vehicular access and parking & exterior yard area Term: twenty-five (25) months to be coterminous with adjacent leases.
Rent: $14,198 per month w/ 3% increase in year 2.
Tenant pays share of all services, utilities and taxes (including possessory interest taxes) As-is condition, no-rent credits
Lease Terms
Months
Monthly
Rent
Annual
Rent Approx. PSF
1-12 $19,500 $234,000 $0.65
13-18 $21,000 $126,000 $0.70
19-24 $21,000 $126,000 $0.70
Total over 24 months $486,000
• Use: Office, research and development, manufacturing, prototyping workshop, testing, instruction, service, repair, retail dive and related uses, including light assembly of vehicle components
• Premises: 30,000 SF of interior plus exclusive parking & exterior fenced yard space (w/ability to expand during term)
• Term: Eighteen (18) month lease with one option to extend for 6 months
• Monthly Rent*: $0.65 PSF increasing to $0.70 after 12 months Yard Area
Parking Area
W. Tower Ave.
* As-is, no rent credits
Tenant pays proportional share of utilities, fees, taxes, etc. • Hold Public Hearing, and
• Approve introduction of ordinance approving lease
amendment with DOER Marine Operations, a California
Corporation
Recommendation