Introduction of Ordinance to Approve
4th Lease Amendment for Building 20
with Auctions By the Bay
April 15, 2025
Building 20
Natel Energy
• Auctions By the Bay, DBA Michaan’s Auctions
• Has occupied Building 20 since 2012
• 63,972 SF commercial warehouse building
• Used as a venue for pre-sale viewing of antiques,
auctions, general office and indoor antiques fair
• The business provides activation along Spirit’s Alley Building 20 is located at 2701 Monarch Street, Alameda Point
Existing Lease Terms and Background
• Current Term: Leased through 2032
• Monthly Rent: $54,822 or $0.86 PSF w/ annual 3% increases. • Proposed 4th Amendment is only an extension of time to repay deferred rent. • Business participated in the City’s Rent Relief Program for non-profits and Spirits Alley tenants at Alameda Point.
• The Program allowed deferral of up to nine (9) months of rent and offered a Rent Credit, if repayment was completed within the scheduled repayment period.
• Previously executed Lease Amendments with Michaan’s:
• 1st Amendment – Clarified Lease Renewal Terms
• 2nd Amendment – Implemented City’s Alameda Point Non-Profit and Spirits Alley Businesses Rent Relief Program in Response to the COVID-19 Pandemic
• 3rd Amendment – Extended Lease Term through 2032
Deferred Rent & Repayment Terms
• $247,833, total rent deferred under the City’s Program • 3-year repayment schedule over 2022, 2023 and 2024
• Michaan’s paid according to the repayment schedule for 2022 and 2023 • $77,739.73 (2024) deferred rent repayment remains due. Tenant current on all base rent. • Michaan’s has requested a 4th Amendment to extend the Repayment Period for the remaining deferred rent, with following terms:
• Term: February 1, 2025 through January 1, 2026 with 10 fixed monthly payments of $6,884.25, and final payment of $8,897.23
• No late fees or interest charges on the deferred rent amount • No Rent Credit will be earned (as offered under the City’s Program) • Michaan’s will continue to pay monthly base rent and all other amounts due • As of April 15, Michaan’s has paid the February 1, March 1, and April 1 fixed payments Staff recommend the proposed 4th Amendment to the Lease:
• Michaan’s has been a tenant in good standing with the City • Nonpayment was due to a transition in accounting staff • Clear communication and request from Michaan’s upon realizing their error Proposed Motion:
Introduce an Ordinance authorizing the City Manager to execute a Fourth Lease Amendment with Auctions By the Bay, Inc., for Building 20, located at 2701 Monarch Street at Alameda Point, for an eleven-month extension to the rent relief program deferred rent repayment schedule.
Staff Recommendation & Proposed Motion