Introduction of Ordinance for Building 360
Lease Amendment (1900 Skyhawk Street)
February 3, 2025
Before (source: Langan) After (source: Astra)
Astra Background
• Aerospace development, testing
and manufacturing and related
administrative office functions.
• Leases Building 360 and Building
397 (Skyhawk Street and W
Pacific Avenue).
• Entered into 5-year lease for
B360 in 2022 after occupying
portions of building since 2017.
• Licenses for various properties
throughout Alameda Point
(yellow areas) have all expired,
month to month.
2 Summary of Leases and Licenses
Natel Energy
Location / Type Term Current Rate (Monthly)
Building 360 (179,070 sq ft
building & land)
7/1/2022 - 12/31/2027 $127,793.62 (after
$42,372.88 lease credit)
Building 397 (17,335 sq ft) 2/1/2017 – Month to
Month effective 9/1/2020
$12,873.50
Land 397 (1,250 sq ft) 2/13/2017 - 2/12/2019
expired – month to month
$187.50
Buildings 616 (and 609)
(1,800 sq ft bldg. and 25,000
sq ft land)
7/18/2018 - 8/31/2019
expired – month to month
$21,780.00
Pier 3 (Maritol) 7/3/2018 - 6/30/2021
expired – month to month
$5,000.00
Current Monthly Rent &
Fees:
$167,634.62
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) Additional Relevant Background
Environmental Remediation: Astra completed
building cleanup and building code upgrades on
Building 360, conducts regular air testing and installed an engineered vapor mitigation system.
The City has provided a $2.5 million partial lease
credit over the 3 year term to offset this cost.
Noise and Vibrations: Astra maintains noise
monitoring and has agreed not to test rockets outside
of the hours of 6 am to 10 pm.
Economic Contributions: 130 total employees
- Possible sales tax revenue from spacecraft engine
sales.
- Unsecured property tax from equipment.
Map showing VOC plume and
100’ buffer near Building 360
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) Why a Rent Deferral Now?
• Astra went public in 2021
• March 2024: Founders Chris Kemp and Dr. Adam London
announced intent to take company private (completed July 2024),
• October 2024: Astra requested rent deferral to allow time to generate sufficient operating revenue following costly
process.
• Sunnyvale lease terminates July 2025, would move
“spacecraft engine manufacturing” to Alameda (30 additional employees).
• Astra is City’s largest leaseholder. Supporting in a time of instability could have lasting economic and financial benefit.
Photo courtesy of Astra
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) Astra and City Tentative Deferral Agreement
Tentative Deferral Agreement
• Nine month deferral, October 2024 through June
2025
• 50% of lease and license fees to be deferred
(currently ~$83,000/month) accruing late fees and
interest
• Retain leases of B360, B397 and licenses of 397
land, B616, B609
• Continue Pier 3 license until Maritol is relocated
• 12 months of fixed repayments (~$69,000/month)
July 2025-June 2026
Photo courtesy of Astra
1. Approve first reading of ordinance amending lease for Building 360 to address all lease payment and license fee deferrals and incorporate repayment plan
• If Astra fails to repay, would default on this lease
2. Staff would process new, one-year licenses for all other properties with same payment terms
3. Staff would continue to work with Astra toward relocating Maritol boat and terminating this license upon relocation
4. Astra still obligated to pay 50% of rent and license fees each month through June 2025, then full rent, license fees plus repayment
Staff Recommendation