November 18, 2025
Community Development
DATE: November 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Emily Combs, Finance Director
Dave Aleshire, City Attorney
Subject:
Contract with RDH Building Science for Craneway
Pavilion Condition Assessment
FINANCIAL IMPACT: The proposed $169,500 expenditure will be funded by the General Fund and is included within the approved
Fiscal Year 2025-2026 budget (Account String:
01161119-400201).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The City of Richmond is negotiating a leasehold interest donation back to the City of the Craneway Pavilion
located at 1414-1422 Harbour Way South. As part of the acquisition of the Craneway, the City is proposing to
complete a pre-turnover inspection of the facility;
therefore, Community Development is requesting
authorization to negotiate and execute a contract with
RDH Building Science to perform a condition assessment
of the Craneway Pavilion, located at the historic Ford
Assembly Plant.
RECOMMENDED ACTION:
APPROVE a contract with RDH Building Science to
perform a condition assessment of the Craneway
Pavilion, located at the historic Ford Assembly Plant, with a payment limit of $169,500, for a term ending December 31, 2026, and AUTHORIZE the City Manager, with
assistance of the City’s Attorney’s Office, to negotiate and execute the contract - Community Development
Department (Lina Velasco 510-620-6706).
AGENDA
REPORT
November 18, 2025
DISCUSSION:
In 2004, the City of Richmond entered into a long-term lease agreement with Ford Point LLC, a wholly owned subsidiary of Orton Entertainment, LLC, granting the lessee a possessory leasehold interest in the City-owned Craneway Pavilion property with base rent in the amount of one dollar ($1) per year. The lease term was established for fifty- five (55) years, with unilateral extension provisions.
Recently, Orton Entertainment, LLC has approached the City with a proposal to voluntarily donate and reconvey to the City its entire possessory leasehold interest in the Craneway Pavilion. This proposed donation would return to the City full control and operational responsibility for the property, presenting both opportunities and potential liabilities that warrant careful assessment prior to acceptance.
To ensure that the City is fully informed regarding the physical, structural, and environmental condition of the facility and any associated obligations that may accompany the turnover, staff recommends engaging a qualified consultant to perform a comprehensive pre-turnover inspection and assessment.
The scope of the pre-turnover inspection would include, but is not limited to:
Structural integrity assessment of the building envelope, foundation, roofing, and load-bearing elements;
Mechanical, electrical, and plumbing (MEP) system evaluations, including HVAC performance and code compliance;
Environmental review, including the presence of hazardous materials (asbestos, lead-based paint, mold, etc.) and compliance with applicable environmental regulations;
ADA accessibility and life-safety code compliance review; Condition assessment of interior and exterior finishes, fixtures, and equipment; Evaluation of deferred maintenance, capital improvement needs, and estimated costs for remediation or repair; and
Preparation of a written report and photographic documentation detailing findings, with recommendations for next steps prior to City acceptance of the leasehold interest.
The consultant’s report will provide a factual foundation for the City to evaluate whether to proceed with acceptance of the proposed donation, identify any liabilities or deferred maintenance obligations, and plan for future programming and capital budgeting for the facility.
The Craneway includes facilities built on private property, formerly owned by Orton Development, which was sold to MC MP Ford Point Realty, LLC in 2022. These facilities include the restrooms, bar, catering kitchen, storage, and production offices located near the northwest entrance of the building. The former Assemble restaurant is not part of the area that the City leases to Orton Development. The restaurant is located on private property also owned by MC MP Ford Point Realty, LLC. Currently,
November 18, 2025
Orton Entertainment, LLC leases the restaurant and bathroom facilities from MC MP Ford Point Realty, LLC via a Restaurant Lease and Craneway Auxiliary Facilities Lease, respectively. The site plan below shows the various lease areas and lessors/lessees.
Consultant Selection Process
On October 9, 2025, the City issued a Request for Proposals (RFP) for Pre-Turnover Condition Assessment for the Craneway Pavilion. The RFP was posted on the City's BidsOnline System, and 1637 vendors were notified. Of the firms notified, 33 downloaded the RFP, and 3 responded with proposals (Attachment 1). The responses were reviewed by a panel of staff from Community Development’s Building Division, Finance Department, Public Works’ Maintenance Division, and Risk Management Division, and RDH Building Science was the highest-ranked team (Attachment 2).
Consequently, City staff are recommending the City Council approve a contract with RDH Building Science and authorize the City Manager, in concert the City Attorney’s Office, to negotiate and execute the contract. (Attachment 3). Upon RDH’s commencement of work the anticipated timeline for them to complete their pre-turnover report is approximately 65 days.
Proposals were evaluated based on the respondents’ relevant experience, proposal & qualifications, project approach & methodology, understanding of Historic Preservation requirements, cost proposal, and references & past performance.
November 18, 2025
Summary of other work being completed for Potential Transaction
In addition to completing the proposed inspection, the City has retained Land Econ Group (LEG) to assist in evaluating the challenges and financial implications associated with transitioning the Craneway Pavilion back into a community event center that serves the public interest. LEG’s key tasks include:
Review of the uses permitted by the State Lands Commission that are consistent with the Public Trust.
Assessment of the operating and maintenance costs.
Preparation of four case studies of how other similar buildings owned by public agencies. The case studies will include the Foss Waterway Seaport in Tacoma, the Fort Mason Center in San Francisco, the Bridge Yard building in Oakland and Pier 70 Building 12 in San Francisco.
The case studies will:
o Discuss the advantages and disadvantages of leasing to a non-profit organization verses retaining a for-profit venue operating company. o Analyze their financial performance, where such information is available
Analyze the implications of a successful Craneway Pavilion on the long-term future of Ford Point waterfront in Richmond.
Upon completion of this work, the City Council will need to either direct staff to conduct further analysis as necessary to address any outstanding questions or concerns identified in the pre-turnover inspection report or financial analysis or consider next steps for accepting the Craneway Pavillion property.
As part of the due diligence for the acquisition, the City will complete a Phase I Environmental Site Assessment, with the support of Stantec, to evaluate potential environmental conditions associated with current and historical uses of the site. This assessment is intended to identify any recognized environmental concerns, ensure compliance with applicable environmental laws, and protect the parties from potential liability related to prior contamination.
SYNERGISTIC POLICIES:
Accepting the leasehold interest of the Craneway will help further City objectives to diversify its economic base, enhance visitor-serving amenities, and utilize its historic waterfront assets. This acquisition advances the City’s goals of attracting meetings, conventions and cultural events; stimulating local hotel-restaurant-retail activity; preserving and activating a landmark historic property; and ensuring meaningful public benefit and access consistent with the City’s waterfront redevelopment and economic inclusion policies.
November 18, 2025
NEXT STEPS:
Upon the completion of the Phase 1 and Pre-turnover inspection, the City will negotiate an agreement with Orton Entertainment LLC, which would include accepting the Craneway facility back subject to negotiated terms and conditions.
In addition, the City is discussing with MC MP Ford Point Realty LLC the leasing of the Auxiliary spaces related to the Craneway and seeing if a common operator for the restaurant and Craneway can be identified.
DOCUMENTS ATTACHED:
Attachment 1 – BidsOnline Summary Report
Attachment 2 – Rating Matrix
Attachment 3 – Contract