pr_12508_batch_2.pdf

From: Lane, PatrickTo: Vollmann, Peterson; Flynn, Rachel; Ty Hudson; Todd, AmberCc: Marcus, Nancy; Ford, Michael; Garcia, Mai-LingSubject: RE: PRA request #12508 -- Hotel on 11th @ WebsterDate: Friday, November 13, 2015 5:19:42 PMAttachments: RE Franklin 88.msg

RE Term Sheet for Hotel Developer.docx.msgTerm Sheet for Hotel Developer.docx.msgRe Franklin 88 Garage- Next Steps.msgRe Franklin 88 Garage- Next Steps.msgRE Terms of Parking Lease.msgRe Parking License....msgRe Term Sheet for Hotel Developer.docx.msgFW Parking License....msg

I think most of my emails included Pete and visa versa. But here are the emails I have. Please note other than those with attachments, I only included the final email in the chain. Patrick Lane [mailto:[email protected]] Development Manager, City Of Oakland Economic & Workforce Development DepartmentProject Implementation Division 250 Frank H. Ogawa Plaza, Suite 5313 Oakland CA 94612 tel (510) 238-7362 fax (510) 238-3691

From: Vollmann, Peterson Sent: Friday, November 13, 2015 10:00 AMTo: Flynn, Rachel; Ty Hudson; Todd, AmberCc: Marcus, Nancy; Lane, Patrick; Ford, Michael; Garcia, Mai-LingSubject: RE: PRA request #12508 -- Hotel on 11th @ Webster Here are the e-mails that I have regarding the proposed project at 378 11th Street. This is minus the two e-mails that I had previously sent to Ty Hudson that contained pdfs with the application materials and the CEQA analysis document. Peterson Z. Vollmann, Planner III | City of Oakland | Bureau of Planning | 250 Frank H. Ogawa, Suite 2114 |Oakland, CA 94612 | Phone: (510)238-6167 | Fax: (510) 238-4730 | Email: [email protected] | Website: www.oaklandnet.com/planning

From: Vollmann, Peterson Sent: Thursday, November 12, 2015 2:47 PMTo: Flynn, Rachel; Ty Hudson; Todd, AmberCc: Marcus, Nancy; Lane, Patrick; Ford, Michael; Garcia, Mai-LingSubject: RE: PRA request #12508 -- Hotel on 11th @ Webster On my end in Planning I do still have e-mail correspondence that I need to pull together as part of the records request. I think there may have been a misunderstanding. I had stated that the application materials themselves had already been provided to the requestor, perhaps that was mistaken to think that the current records request had already been satisfied. I will get the e-mail correspondence that I have together within the next few days.

RE: Franklin 88

From

Ford, Michael

To

Hillmer, J H; Kahn, Kelley; Sawicki, Mark; Lane, Patrick; Vollmann, Peterson

Recipients

[email protected]; [email protected]; [email protected]; [email protected]; [email protected]

Spoke with Dhruvthe Patels will not bring their attorney and wish to keep our meeting as scheduled for tomorrow at 4pm. He will send an email confirming this arrangement.

Cheers,

Michael

_____________________________________________From: Ford, Michael Sent: Monday, July 27, 2015 5:09 PMTo: Hillmer, J H; Kahn, Kelley; Sawicki, Mark; Lane, Patrick; Vollmann, PetersonSubject: RE: Franklin 88

Thanks, Jens! Ill call Dhruv Patel and explain the situation

_____________________________________________From: Hillmer, J H Sent: Monday, July 27, 2015 5:06 PMTo: Kahn, Kelley; Sawicki, Mark; Ford, Michael; Lane, Patrick; Vollmann, PetersonSubject: RE: Franklin 88

Hi:

If they want to bring an attorney, we also need to have one in attendance. We would have to reschedule the meeting to make that happen. Alternatively, we can meet the Patels without attorneys and go over the term sheet in an effort to reach broad agreement.

Jens

Jens Hillmer

Urban Economic Coordinator

Economic & Workforce

Development Department

Project Implementation Division

City of Oakland

250 Frank H. Ogawa Plaza, Ste. 5313

Oakland, CA 94612

Tel.: 510-238-3317

[email protected]

_____________________________________________From: Kahn, Kelley Sent: Monday, July 27, 2015 2:58 PMTo: Hillmer, J H; Sawicki, Mark; Ford, Michael; Lane, Patrick; Vollmann, PetersonSubject: RE: Franklin 88

Hi all,

Wanted to let you know that the Patels forwarded the 4pm meeting invite to their attorney, Neil Parish at Wendel Rosen. He accepted.

Kelley Kahn

Special Projects Director

Office of the City Administrator l City of Oakland

-----Original Appointment-----From: Hillmer, J H Sent: Monday, July 27, 2015 11:47 AMTo: Hillmer, J H; Sawicki, Mark; Kahn, Kelley; Ford, Michael; Lane, Patrick; Vollmann, PetersonSubject: FW: Franklin 88When: Tuesday, July 28, 2015 3:00 PM-4:00 PM (UTC-08:00) Pacific Time (US & Canada).Where: ConfRoom - Prescott

This was being scheduled with the hotel developer but based on our discussion we need to meet internally first.

-----Original Appointment-----From: Hillmer, J H Sent: Monday, July 27, 2015 11:04 AMTo: Hillmer, J H; Lane, Patrick; Ford, MichaelSubject: Franklin 88When: Tuesday, July 28, 2015 3:00 PM-4:00 PM (UTC-08:00) Pacific Time (US & Canada).Where: ConfRoom - Prescott

RE: Term Sheet for Hotel Developer.docx

From

Ford, Michael

To

Lane, Patrick; Hillmer, J H

Recipients

[email protected]; [email protected]

Sounds goodIm sending the term sheet to Dhruv now and will work with Jens on the license per Dans instructions.

Thanks!

From: Lane, Patrick Sent: Thursday, July 16, 2015 2:33 PMTo: Hillmer, J H; Ford, MichaelSubject: RE: Term Sheet for Hotel Developer.docx

This looks fine to me. We can also discuss the option to purchase the garage. But before that happens we need to work out some issues around the operation of the facility and the owners association.

Patrick Lane [mailto:[email protected]] Development Manager, City Of Oakland Economic & Workforce Development Department

Project Implementation Division 250 Frank H. Ogawa Plaza, Suite 5313 Oakland CA 94612 tel (510) 238-7362 fax (510) 238-3691

From: Hillmer, J H Sent: Thursday, July 16, 2015 12:24 PMTo: Lane, Patrick; Ford, MichaelSubject: Term Sheet for Hotel Developer.docx

Hi Patrick and Michael:

I have attached the term sheet. According to Pete Vollmann, we do not have to give them a 66-year license term and the depreciable life of this asset class according to the IRS is 39 years, but I understand that a longer term is desired by the Patels.

In terms of the payment, I think that a 15-year amortization period with a balloon payment in year 5 is reasonable in light of the fact that the Patels would otherwise have to pay the entire amount upfront.

Please let me know your thoughts.

Jens

Term Sheet for Hotel Developer.docx

From

Hillmer, J H

To

Lane, Patrick; Ford, Michael

Recipients


Hi Patrick and Michael:

I have attached the term sheet. According to Pete Vollmann, we do not have to give them a 66-year license term and the depreciable life of this asset class according to the IRS is 39 years, but I understand that a longer term is desired by the Patels.

In terms of the payment, I think that a 15-year amortization period with a balloon payment in year 5 is reasonable in light of the fact that the Patels would otherwise have to pay the entire amount upfront.

Please let me know your thoughts.

Jens



Franklin 88

Parking License Terms

Licensor:Oakland Redevelopment Successor Agency (ORSA)

Licensee:Name of Hotel Owner

Parking Facility:989 Franklin Street, Oakland, CA

Initial Term:Commencing upon the effective date of a Parking License Agreement (the Agreement) and expiring on the date that is sixty-six (66) years thereafter, unless terminated sooner pursuant to the terms of the Agreement.

Use:Licensee shall have the right during the term of the Agreement to use up to eighty-six (86) Parking Spaces in the Parking Facility, in connection with the operation of the hotel, which Parking Spaces may or may not be contiguous, for 24 hours per day. Licensee and/or its guest and invitees shall use such Parking Spaces in accordance with the rules and regulations adopted on a non-discriminatory basis, from time to time by Licensor and/or garage operator. Licensor will meet its obligation to provide the specified number of Parking Spaces by providing sufficient space in connection with the use of a Scramble System which intensifies parking use, subject to the provisions of the Parking License agreement.

Parking Usage Fee:At the time of executing the Agreement, Licensee shall pay a Parking Space usage fee to ORSA equal to $20,000 per Parking Space for a total of $1.7 million. Licensee shall have the option to pay such fee in equal monthly installments with an annual interest rate of the then current Prime Rate plus 200 basis points based on a 15-year amortization period with a balloon payment of all outstanding principal at the end of 5 years.

Parking Fee:Licensee shall be charged the prevailing hourly or daily rate for a Parking Space in the Parking Facility established by the Garage Operator.

Insurance:Licensees license shall be subject to all of the Citys insurance requirements to be attached as an exhibit to the Parking License Agreement.

No Real Property

Interest:The Agreement shall not create in Licensee any lease, ownership or other real property interest in the Parking Facility other than expressly provided in the Agreement.

This term sheet does not constitute, and shall not be deemed to create, a binding contract between the Licensor and Licensee for the reservation of Parking Spaces as described herein. A binding contract will exist only if and when Licensor and Licensee enter into a mutually acceptable Agreement. The Oakland Redevelopment Successor Agencys (ORSA) governing body must authorize the execution of any such Agreement, which requires further approval by separate resolution from ORSAs Oversight Board and approval of said resolution by the State Department of Finance (DOF) in order to legally bind ORSA to any such contract.

Re: Franklin 88 Garage- Next Steps

From

Dhruv Patel

To

Golde, James

Cc

Lane, Patrick

Recipients


James,

Any word on the next steps?

Dhruv Patel

(510)-407-0308

On Jun 8, 2015, at 12:20 PM, Golde, James wrote:

Mr. Patel,

I got your voicemail. I will review this information with Mr. Ford and Mr. Lane and circle back to discuss next steps with you.

Regards,

JamesGolde

Manager | Real Estate Services

City of Oakland

250 Frank H. Ogawa Plaza, Suite 4314

Oakland, CA. 94612

510-238-6354 | [email protected]

This email message and any attachments are intended solely for the use of the individual or entity to which it is addressed and may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, copying, or other use of this message or its attachments is strictly prohibited. If you have received this message in error, please notify the sender immediately and permanently delete this message and attachments.

From: [email protected] [mailto:[email protected]] Sent: Saturday, June 06, 2015 10:05 AMTo: Lane, Patrick; Golde, James; Ford, MichaelCc: Vollmann, Peterson; Flynn, Rachel; Sima PatelSubject: Franklin 88 Garage- Next Steps

Hello All,

I wanted to send out a summary of what we believe are the next steps in regards to parking for our hotel project. There has been a change in our proposal and our application will be amended next week to include 19 more units bringing the total to 114 units within a 7 story structure.

Here is what I believe is the course of action:

1) Michael will continue to get documents drawn up for the licensing option (note we have 114 units now).We understand that there is a certain fee per space and we spoke about ammortizing this fee over a longer term so it would not be a huge up front burden.

2) We will also consider purchasing the garage outright. We are willing to pay for the appraisal fee up front, however we are requesting to enter into an ENA for the sale of the garage. We have a strong interest in persuing this option.

James- if this is agreeable we should get the ENA drafted and appraisal ordered ASAP. We are happy to bring by a check or pay the agreed upon appraiser directly.

We want to continue working both avenues simultaneously so our application can move forward. If we can get it to a point where the terms of the license are agreeable perhaps Pete would consider approving the application with a condition that we either enter into the license agreement or purchase the garage.

Please let me know your thoughts,I am avaialble for a call or meeting anytime next week.

Dhruv Patel

COO / VP Development

Ridgemont Hospitality

PO BOX 2548

Oakland, CA 94614

510-407-0308

[email protected]

Re: Franklin 88 Garage- Next Steps

From

Lane, Patrick

To

Golde, James; Ford, Michael; Jens Hillmer

Recipients

[email protected]; [email protected]; [email protected]

The ENA would require approval Council, Oversight Board & DoF. It would take months. Instead we can provide a letter from the City Administrator outlining the process and committing to bring the sale forward once agreement is reached on terms.

Sent from my iPhone

Patrick Lane


Mr. Patel,

I got your voicemail. I will review this information with Mr. Ford and Mr. Lane and circle back to discuss next steps with you.

Regards,

JamesGolde

Manager | Real Estate Services

City of Oakland

250 Frank H. Ogawa Plaza, Suite 4314

Oakland, CA. 94612

510-238-6354 | [email protected]

This email message and any attachments are intended solely for the use of the individual or entity to which it is addressed and may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, copying, or other use of this message or its attachments is strictly prohibited. If you have received this message in error, please notify the sender immediately and permanently delete this message and attachments.

From: [email protected] [mailto:[email protected]] Sent: Saturday, June 06, 2015 10:05 AMTo: Lane, Patrick; Golde, James; Ford, MichaelCc: Vollmann, Peterson; Flynn, Rachel; Sima PatelSubject: Franklin 88 Garage- Next Steps

Hello All,

I wanted to send out a summary of what we believe are the next steps in regards to parking for our hotel project. There has been a change in our proposal and our application will be amended next week to include 19 more units bringing the total to 114 units within a 7 story structure.

Here is what I believe is the course of action:

1) Michael will continue to get documents drawn up for the licensing option (note we have 114 units now).We understand that there is a certain fee per space and we spoke about ammortizing this fee over a longer term so it would not be a huge up front burden.

2) We will also consider purchasing the garage outright. We are willing to pay for the appraisal fee up front, however we are requesting to enter into an ENA for the sale of the garage. We have a strong interest in persuing this option.

James- if this is agreeable we should get the ENA drafted and appraisal ordered ASAP. We are happy to bring by a check or pay the agreed upon appraiser directly.

We want to continue working both avenues simultaneously so our application can move forward. If we can get it to a point where the terms of the license are agreeable perhaps Pete would consider approving the application with a condition that we either enter into the license agreement or purchase the garage.

Please let me know your thoughts,I am avaialble for a call or meeting anytime next week.

Dhruv Patel

COO / VP Development

Ridgemont Hospitality

PO BOX 2548

Oakland, CA 94614

510-407-0308

[email protected]

RE: Terms of Parking Lease

From

Ford, Michael

To

Vollmann, Peterson

Cc

Lane, Patrick; Hillmer, J H

Recipients


Thanks, Pete!

Patrick, Jens and I had a good meeting with the Patels. Patrick will share some of the details to make sure all is doable from your point of view.

Michael

From: Vollmann, Peterson Sent: Wednesday, June 03, 2015 10:18 AMTo: Ford, MichaelSubject: Terms of Parking Lease

Michael-

I just your voice mail. The Planning Code just says that the parking must exist for the duration of the activity. However, if they are paying what is equivalent to the in-lieu fee I dont see why we cant make an exception as long as there is a very long term lease.

Peterson Z. Vollmann, Planner III | City of Oakland | Bureau of Planning | 250 Frank H. Ogawa, Suite 2114 |Oakland, CA 94612 | Phone: (510)238-6167| Fax: (510) 238-4730 | Email: [email protected] | Website: www.oaklandnet.com/planning

Re: Parking License...

From

Ford, Michael

To

Lane, Patrick

Recipients

[email protected]

Thanks, Patrick, understood!

Michael P. Ford, Ph.D., C.P.P.

Off-Street Parking Manager, PAIII

Transportation Services Division

Bureau of Engineering & Construction

City of Oakland | Public Works Department | APWA Accredited Agency

250 Frank H. Ogawa Plaza, Suite 4344 | Oakland, CA 94612

(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 Mobile

[email protected]

Report A Problem | Public Works Call Center |(510) 615-5566

www.oaklandpw.com|[email protected] |Mobile app:SeeClickFix

_____

From: Lane, PatrickSent: Wednesday, June 3, 2015 12:44 AMTo: Ford, MichaelSubject: Re: Parking License...

Still at Council & I won't have time on the morning. If you don't have time we will just not have one. We can discuss at the start of meeting.

Sent from my iPhone

Patrick Lane

On Jun 2, 2015, at 7:59 PM, Ford, Michael wrote:

Thanks, Patrick!

Jens, I'll let you prepare the agenda unless you like me to do it.

See you both at 10 tomorrow!

Cheers,

Michael

Sent from my iPhone

On Jun 2, 2015, at 7:14 PM, Lane, Patrick wrote:

Some quick responses to your questions.

1. I think we can have a discussion tomorrow and then send a formal letter. We can adjust the letter based on our discussion. You might want to prepare an Agenda with some of the terms listed.

2. I talked to Kelley today and she had no issues with the terms of the license. She said she hadnt discussed specific terms with the developer.

3. That is fine. Jens and I can tag team as needed.



From: Ford, Michael Sent: Tuesday, June 02, 2015 11:19 AMTo: Lane, PatrickCc: Hillmer, J H; Wlassowsky, WladSubject: RE: Parking License...

Hi Patrick,

In preparation for tomorrows meeting with the Patels (10am in the Lake Merritt Conf room here on the fourth floor), I was wondering:

1. Should we prepare an informal offer letter stating the terms of our proposal to use Franklin 88 to meet the parking requirements of the hotel project? Terms would include 75 spaces, $20,000 per space for a total of $1.5million, offer payment terms (e.g., 2% over prime for years), use the existing license agreement between City and Courtyard Marriot as a model (including provisions for pay-for-parking at published, market rates), subject to approval of Oversight Board and DOF, etc.

2. Has Kelley Kahn been briefed on this proposal? I think it would be a good idea to do so before we meet for at least two reasons: 1) she can shed more light on the genesis and importance of this project (as none of us were in it from the beginning); and 2) we would then be on the same page and we would avoid sending mixed signals or catching Kelley by surprise;

3. I have not invited Jens to the meeting on purpose as I would like to reserve him for a future meeting when we sit down to discuss the specifics of the license agreement with Dhruv Patel. Ideally, we will leave tomorrows meeting with a general agreement on basic terms and a shared commitment to taking next steps.

Please let me know what I can do to help make this a successful meeting!

Cheers,

Michael

From: Hillmer, J H Sent: Tuesday, May 05, 2015 9:18 AMTo: Golde, James; Ford, MichaelCc: Lane, PatrickSubject: RE: Parking License...

Hi:

I also think that we should get rid of the existing parking operator at Franklin 88 before we enter into a new license for the hotel.

Jens

Jens Hillmer

Urban Economic Coordinator

Economic & Workforce

Development Department

Project Implementation Division

City of Oakland

250 Frank H. Ogawa Plaza, Ste. 5313

Oakland, CA 94612

Tel.: 510-238-3317

[email protected]

From: Golde, James Sent: Monday, May 04, 2015 11:00 PMTo: Ford, MichaelCc: Lane, Patrick; Kahn, Kelley; Flynn, Rachel; Vollmann, Peterson; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, DianneSubject: Re: Parking License...

Patrick and Michael,

As long as the city has the freedom to structure the market rate deal, it should improve the sales value. Since Franklin 88 sale price will be based on the income stream it produces the additional revenue will be a plus.

Real Estate has the authority to enter into 1 yr leases on for redevelopment property so this long term deal will need to go to Oversight Board and DOF. Let's discuss who will take the lead on this negotiation and next steps.

James

On May 4, 2015, at 10:12 PM, Ford, Michael wrote:

Thanks, Patrick! If the parkinglicense for the new hotel is set up like the existing one at Franklin 88, then the hotelowners will only pay for parking (at market rates)when it is used by hotel guests. Assuming as much,what willthe Oversight Board/DoFconsider asacceptable compensation for encumbering Franklin 88 with this newobligation?I'm not sure how to answer that question, but here are some comps to keep in mind:

Spaces (.75 per guest room)

75

Totals

Above-grade garage cost per space

$25,000

$1,875,000

Below-grade garage cost per space

$43,000

$3,225,000

In lieu parking fee per space

$20,000*

$1,500,000

* This was the amount proposedfor the Broadway Valdez AreaSpecific Plan

_____

From: Lane, PatrickSent: Monday, May 4, 2015 6:24 PMTo: Kahn, Kelley; Ford, MichaelCc: Flynn, Rachel; Vollmann, Peterson; Golde, James; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, DianneSubject: RE: Parking License...

I would think this could be OK. But under the long range property management plan we are required to sell the garage. This might not be an issue if we sold the garage with the license in place. We would need to get Oversight Board and DoF approval for this agreement. We could instead sell the garage to the hotel owner. I met the developer previously and suggested they buy the garage. They didnt seem interested.



From: Kahn, Kelley Sent: Monday, May 04, 2015 4:33 PMTo: Ford, MichaelCc: Flynn, Rachel; Vollmann, Peterson; Golde, James; Lane, Patrick; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, Dianne ([email protected])Subject: RE: Parking License...

Hi Michael,

Has the developer moved away from the Pacific Renaissance Plaza/Wellington Properties parking garage idea? It sounds like your suggestion to use the Franklin Garage makes better sense if the DOF doesnt create an issue.

Just to set the context for everyone, this hotel developer met with staff from Public Works, ED and Planning last June and multiple times since then about their need for additional parking spaces in a nearby city-owned garage or lot. Staff has been consistently supportive of this parking solution, which helped the developer move forward with the project. We are really excited to get a new hotel built in Oakland.

Thanks,

Kelley

Kelley Kahn

Special Projects Director

Office of the City Administrator l City of Oakland

From: Ford, Michael Sent: Monday, May 04, 2015 3:54 PMTo: Millner, DianneCc: Golde, James; Lane, Patrick; Hillmer, J H; Lee, Heather; Vollmann, Peterson; Kahn, Kelley; Wlassowsky, Wlad; Ortiz, CelsoSubject: FW: Parking License...

Hi Dianne,

I just came from a meeting with Heather Lee concerning a proposed hotel project at 378 11th St in Chinatown that will require 75 off-street parking spaces at a remote site (but within walking distance). The developer is open to different options and is looking for the City to offer a solution.

My latest thinking is that the Franklin 88 Garage would be the best suited for this purpose: the facility already has a similar agreement in place with another hotel (see attached); was built to operate as a valet garage operating 24/7; and has the capacity to meet the needs of both hotels while serving the needs of other monthly and transient parkers in the neighborhood. That said, I realize that there may be certain restrictions imposed by the DOF on what the City can do with this asset.

In any event, I will need your help developing a license agreement in support of this project even if it means using one of the other City-owned garages in the Chinatown area. Please advise!

Thanks,

Michael







(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 Mobile

[email protected]

Report A Problem | Public Works Call Center | (510) 615-5566

www.oaklandpw.com | [email protected] | Mobile app: SeeClickFix

From: Chan, Esther Sent: Wednesday, April 08, 2015 8:54 AMTo: Ford, MichaelSubject: Parking License...

Michael,

Is this the document youre looking for?

Esther

Re: Term Sheet for Hotel Developer.docx

From

Ford, Michael

To

Hillmer, J H; Vollmann, Peterson

Cc

Lane, Patrick

Recipients


Thanks, Jens!

Pete -- Can you please confirmthe minimum term that we need to offer the Patels for their hotel project! 66 years?

Cheers,

Michael







(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 Mobile

[email protected]

Report A Problem | Public Works Call Center |(510) 615-5566

www.oaklandpw.com|[email protected] |Mobile app:SeeClickFix

_____

From: Hillmer, J HSent: Tuesday, June 2, 2015 1:41 PMTo: Ford, Michael; Lane, PatrickSubject: Term Sheet for Hotel Developer.docx

Hi Michael and Patrick:

In anticipation of your meeting with the Hotel Developer tomorrow, I have prepared a draft of a preliminary term sheet for the contemplated transaction. Please review and make changes as you see fit. One question would be: If we are offering an initial term and an extension term, are we going to charge them a fee of exercising the extension? If so, that should be reflected in the term sheet. We could, of course, just give them one term of 66 years, which would take care of that issue. Please let me know your thoughts.

Jens

FW: Parking License...

From

Ford, Michael

To

Millner, Dianne

Cc

Golde, James; Lane, Patrick; Hillmer, J H; Lee, Heather; Vollmann, Peterson; Kahn, Kelley; Wlassowsky, Wlad; Ortiz, Celso

Recipients

[email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]

Hi Dianne,

I just came from a meeting with Heather Lee concerning a proposed hotel project at 378 11th St in Chinatown that will require 75 off-street parking spaces at a remote site (but within walking distance). The developer is open to different options and is looking for the City to offer a solution.

My latest thinking is that the Franklin 88 Garage would be the best suited for this purpose: the facility already has a similar agreement in place with another hotel (see attached); was built to operate as a valet garage operating 24/7; and has the capacity to meet the needs of both hotels while serving the needs of other monthly and transient parkers in the neighborhood. That said, I realize that there may be certain restrictions imposed by the DOF on what the City can do with this asset.

In any event, I will need your help developing a license agreement in support of this project even if it means using one of the other City-owned garages in the Chinatown area. Please advise!

Thanks,

Michael







(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 Mobile

[email protected]

Report A Problem | Public Works Call Center | (510) 615-5566

www.oaklandpw.com | [email protected] | Mobile app: SeeClickFix


Michael,

Is this the document youre looking for?

Esther

Parking License - Oak Garden Hotel 5-4-00.pdf

Parking License - Oak Garden Hotel 5-4-00.pdf

Peterson Z. Vollmann, Planner III | City of Oakland | Bureau of Planning | 250 Frank H. Ogawa, Suite 2114 |Oakland, CA 94612 | Phone: (510)238-6167 | Fax: (510) 238-4730 | Email: [email protected] | Website: www.oaklandnet.com/planning

From: Flynn, Rachel Sent: Thursday, November 12, 2015 2:03 PMTo: Ty Hudson; Todd, AmberCc: Marcus, Nancy; Vollmann, Peterson; Lane, Patrick; Ford, Michael; Garcia, Mai-LingSubject: PRA request #12508 -- Hotel on 11th @ Webster Im copying everyone on this request in Ambers absence. Please check all documents related to the

Hampton Inn on 11th Street @ Webster.

From: Ty Hudson [mailto:[email protected]] Sent: Thursday, November 12, 2015 1:20 PMTo: Todd, AmberCc: Flynn, RachelSubject: PRA request #12508 Ms. Todd, I have received the Citys response to my public records request #12508, which states no additional documents since your July 27, 2015 request. It is true that I have previously requested and received a few specific documents, including the application documents, the plans, and the environmental review documents for the project in question. However, is not believable that there are no other documents responsive to my latest request. For example, 1. I know that the developers have met with Patrick Lane in the Department of Neighborhood Investment / Project Implementation Division regarding licensing City-owned parking for their project. I do not believe that there are no documents related to that meeting, such as emails requesting the meeting, emails between the Project Implementation Division and the Department of Building and Planning regarding the project and its parking needs, notes from that meeting, etc. 2. It is hard to believe that there have been no written or electronic communications between the project applicant and the City, or internal to the City, regarding the processing of the development application, either before July 27, 2015, or since then. Please address these specific points and respond to my original request (#12508) by providing all communications (to, from, or between any City department or office) and documents related to the development proposal at 378 11th Street. Ty HudsonResearch AnalystUNITE HERE Local 2850http://www.unitehere.orgcell: 213-509-9114

From: Lane, PatrickTo: Golde, James; Ford, Michael; Jens HillmerSubject: Re: Franklin 88 Garage- Next StepsDate: Monday, June 08, 2015 5:11:46 PM


Sent from my iPhonePatrick Lane


Mr. Patel, I got your voicemail. I will review this information with Mr. Ford and Mr. Lane and circle back to discuss next steps with you.Regards,JamesGoldeManager | Real Estate Services City of Oakland250 Frank H. Ogawa Plaza, Suite 4314Oakland, CA. 94612 510-238-6354 | [email protected] This email message and any attachments are intended solely for the use of the individual or entity to which it is addressed and may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, copying, or other use of this message or its attachments is strictly prohibited. If you have received this message in error, please notify the sender immediately and permanently delete this message and attachments.

From: [email protected] [mailto:[email protected]] Sent: Saturday, June 06, 2015 10:05 AMTo: Lane, Patrick; Golde, James; Ford, MichaelCc: Vollmann, Peterson; Flynn, Rachel; Sima PatelSubject: Franklin 88 Garage- Next Steps Hello All, I wanted to send out a summary of what we believe are the next steps in regards to parking for our hotel project. There has been a change in our proposal and our application will be amended next week to include 19 more units bringing the total to 114 units within a 7 story structure.

Here is what I believe is the course of action: 1) Michael will continue to get documents drawn up for the licensing option (note we have 114 units now).We understand that there is a certain fee per space and we spoke about ammortizing this fee over a longer term so it would not be a huge up front burden. 2) We will also consider purchasing the garage outright. We are willing to pay for the appraisal fee up front, however we are requesting to enter into an ENA for the sale of the garage. We have a strong interest in persuing this option. James- if this is agreeable we should get the ENA drafted and appraisal ordered ASAP. We are happy to bring by a check or pay the agreed upon appraiser directly. We want to continue working both avenues simultaneously so our application can move forward. If we can get it to a point where the terms of the license are agreeable perhaps Pete would consider approving the application with a condition that we either enter into the license agreement or purchase the garage. Please let me know your thoughts, I am avaialble for a call or meeting anytime next week. Dhruv PatelCOO / VP Development Ridgemont Hospitality PO BOX 2548 Oakland, CA 94614 510-407-0308 [email protected]

From: Lane, PatrickTo: Golde, James; Ford, Michael; Jens HillmerSubject: Re: Franklin 88 Garage- Next StepsDate: Monday, June 08, 2015 5:11:46 PM





From: [email protected] [mailto:[email protected]] Sent: Saturday, June 06, 2015 10:05 AMTo: Lane, Patrick; Golde, James; Ford, MichaelCc: Vollmann, Peterson; Flynn, Rachel; Sima PatelSubject: Franklin 88 Garage- Next Steps Hello All, I wanted to send out a summary of what we believe are the next steps in regards to parking for our hotel project. There has been a change in our proposal and our application will be amended next week to include 19 more units bringing the total to 114 units within a 7 story structure.

Here is what I believe is the course of action: 1) Michael will continue to get documents drawn up for the licensing option (note we have 114 units now).We understand that there is a certain fee per space and we spoke about ammortizing this fee over a longer term so it would not be a huge up front burden. 2) We will also consider purchasing the garage outright. We are willing to pay for the appraisal fee up front, however we are requesting to enter into an ENA for the sale of the garage. We have a strong interest in persuing this option. James- if this is agreeable we should get the ENA drafted and appraisal ordered ASAP. We are happy to bring by a check or pay the agreed upon appraiser directly. We want to continue working both avenues simultaneously so our application can move forward. If we can get it to a point where the terms of the license are agreeable perhaps Pete would consider approving the application with a condition that we either enter into the license agreement or purchase the garage. Please let me know your thoughts, I am avaialble for a call or meeting anytime next week. Dhruv PatelCOO / VP Development Ridgemont Hospitality PO BOX 2548 Oakland, CA 94614 510-407-0308 [email protected]

From: Ford, MichaelTo: Lane, PatrickSubject: Re: Parking License...Date: Wednesday, June 03, 2015 5:35:14 AM

Thanks, Patrick, understood!

Michael P. Ford, Ph.D., C.P.P. Off-Street Parking Manager, PAIIITransportation Services DivisionBureau of Engineering & ConstructionCity of Oakland | Public Works Department | APWA Accredited Agency250 Frank H. Ogawa Plaza, Suite 4344 | Oakland, CA 94612(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 [email protected]

Report A Problem | Public Works Call Center | (510) 615-5566www.oaklandpw.com | [email protected] | Mobile app: SeeClickFix

From: Lane, PatrickSent: Wednesday, June 3, 2015 12:44 AMTo: Ford, MichaelSubject: Re: Parking License... Still at Council & I won't have time on the morning. If you don't have time we will just not have one. We can discuss at the start of meeting.


On Jun 2, 2015, at 7:59 PM, Ford, Michael wrote:

Thanks, Patrick!

Jens, I'll let you prepare the agenda unless you like me to do it.

See you both at 10 tomorrow!

Cheers,Michael

Sent from my iPhone

On Jun 2, 2015, at 7:14 PM, Lane, Patrick wrote:

Some quick responses to your questions.

1. I think we can have a discussion tomorrow and then send a formal letter. We can adjust the letter based on our discussion. You might want to prepare an Agenda with some of the terms listed.

2. I talked to Kelley today and she had no issues with the terms of the license. She said she hadnt discussed specific terms with the developer.

3. That is fine. Jens and I can tag team as needed. Patrick Lane [mailto:[email protected]] Development Manager, City Of Oakland Economic & Workforce Development DepartmentProject Implementation Division 250 Frank H. Ogawa Plaza, Suite 5313 Oakland CA 94612 tel (510) 238-7362 fax (510) 238-3691 From: Ford, Michael Sent: Tuesday, June 02, 2015 11:19 AMTo: Lane, PatrickCc: Hillmer, J H; Wlassowsky, WladSubject: RE: Parking License... Hi Patrick, In preparation for tomorrows meeting with the Patels (10am in the Lake Merritt Conf room here on the fourth floor), I was wondering:

1. Should we prepare an informal offer letter stating the terms of our proposal to use Franklin 88 to meet the parking requirements of the hotel project? Terms would include 75 spaces, $20,000 per space for a total of $1.5million, offer payment terms (e.g., 2% over prime for years), use the existing license agreement between City and Courtyard Marriot as a model (including provisions for pay-for-parking at published, market rates), subject to approval of Oversight Board and DOF, etc.

2. Has Kelley Kahn been briefed on this proposal? I think it would be a good idea to do so before we meet for at least two reasons: 1) she can shed more light on the genesis and importance of this project (as none of us were in it from the beginning); and 2) we

would then be on the same page and we would avoid sending mixed signals or catching Kelley by surprise;

3. I have not invited Jens to the meeting on purpose as I would like to reserve him for a future meeting when we sit down to discuss the specifics of the license agreement with Dhruv Patel. Ideally, we will leave tomorrows meeting with a general agreement on basic terms and a shared commitment to taking next steps.

Please let me know what I can do to help make this a successful meeting! Cheers,Michael From: Hillmer, J H Sent: Tuesday, May 05, 2015 9:18 AMTo: Golde, James; Ford, MichaelCc: Lane, PatrickSubject: RE: Parking License... Hi: I also think that we should get rid of the existing parking operator at Franklin 88 before we enter into a new license for the hotel. Jens Jens HillmerUrban Economic CoordinatorEconomic & WorkforceDevelopment DepartmentProject Implementation DivisionCity of Oakland250 Frank H. Ogawa Plaza, Ste. 5313Oakland, CA 94612Tel.: [email protected] From: Golde, James Sent: Monday, May 04, 2015 11:00 PMTo: Ford, MichaelCc: Lane, Patrick; Kahn, Kelley; Flynn, Rachel; Vollmann, Peterson; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, DianneSubject: Re: Parking License... Patrick and Michael, As long as the city has the freedom to structure the market rate deal, it should improve the sales value. Since Franklin 88 sale price will

be based on the income stream it produces the additional revenue will be a plus. Real Estate has the authority to enter into 1 yr leases on for redevelopment property so this long term deal will need to go to Oversight Board and DOF. Let's discuss who will take the lead on this negotiation and next steps. James

On May 4, 2015, at 10:12 PM, Ford, Michael wrote:

Thanks, Patrick! If the parking license for the new hotel is set up like the existing one at Franklin 88, then the hotel owners will only pay for parking (at market rates) when it is used by hotel guests. Assuming as much, what will the Oversight Board/DoF consider as acceptable compensation for encumbering Franklin 88 with this new obligation? I'm not sure how to answer that question, but here are some comps to keep in mind:

Spaces (.75 per guest room) 75 Totals

Above-grade garage cost per space $25,000 $1,875,000Below-grade garage cost per space $43,000 $3,225,000In lieu parking fee per space $20,000* $1,500,000

* This was the amount proposed for the Broadway Valdez Area Specific Plan

From: Lane, PatrickSent: Monday, May 4, 2015 6:24 PMTo: Kahn, Kelley; Ford, MichaelCc: Flynn, Rachel; Vollmann, Peterson; Golde, James; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, DianneSubject: RE: Parking License... I would think this could be OK. But under the long range property management plan we are required to sell the garage. This might not be an issue if we sold the garage

with the license in place. We would need to get Oversight Board and DoF approval for this agreement. We could instead sell the garage to the hotel owner. I met the developer previously and suggested they buy the garage. They didnt seem interested. Patrick Lane [mailto:[email protected]] Development Manager, City Of Oakland Economic & Workforce Development DepartmentProject Implementation Division 250 Frank H. Ogawa Plaza, Suite 5313 Oakland CA 94612 tel (510) 238-7362 fax (510) 238-3691 From: Kahn, Kelley Sent: Monday, May 04, 2015 4:33 PMTo: Ford, MichaelCc: Flynn, Rachel; Vollmann, Peterson; Golde, James; Lane, Patrick; Hillmer, J H; Wlassowsky, Wlad; Sawicki, Mark; Millner, Dianne ([email protected])Subject: RE: Parking License... Hi Michael, Has the developer moved away from the Pacific Renaissance Plaza/Wellington Properties parking garage idea? It sounds like your suggestion to use the Franklin Garage makes better sense if the DOF doesnt create an issue. Just to set the context for everyone, this hotel developer met with staff from Public Works, ED and Planning last June and multiple times since then about their need for additional parking spaces in a nearby city-owned garage or lot. Staff has been consistently supportive of this parking solution, which helped the developer move forward with the project. We are really excited to get a new hotel built in Oakland. Thanks, Kelley Kelley KahnSpecial Projects DirectorOffice of the City Administrator l City of Oakland From: Ford, Michael Sent: Monday, May 04, 2015 3:54 PM

To: Millner, DianneCc: Golde, James; Lane, Patrick; Hillmer, J H; Lee, Heather; Vollmann, Peterson; Kahn, Kelley; Wlassowsky, Wlad; Ortiz, CelsoSubject: FW: Parking License... Hi Dianne, I just came from a meeting with Heather Lee concerning a

proposed hotel project at 378 11th St in Chinatown that will require 75 off-street parking spaces at a remote site (but within walking distance). The developer is open to different options and is looking for the City to offer a solution. My latest thinking is that the Franklin 88 Garage would be the best suited for this purpose: the facility already has a similar agreement in place with another hotel (see attached); was built to operate as a valet garage operating 24/7; and has the capacity to meet the needs of both hotels while serving the needs of other monthly and transient parkers in the neighborhood. That said, I realize that there may be certain restrictions imposed by the DOF on what the City can do with this asset. In any event, I will need your help developing a license agreement in support of this project even if it means using one of the other City-owned garages in the Chinatown area. Please advise! Thanks,Michael Michael P. Ford, Ph.D., C.P.P.Off-Street Parking Manager, PAIIITransportation Services DivisionBureau of Engineering & ConstructionCity of Oakland | Public Works Department | APWA Accredited Agency250 Frank H. Ogawa Plaza, Suite 4344 | Oakland, CA 94612(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 [email protected]


From: Chan, Esther Sent: Wednesday, April 08, 2015 8:54 AMTo: Ford, MichaelSubject: Parking License... Michael, Is this the document youre looking for? Esther

From: Ford, MichaelTo: Millner, DianneCc: Golde, James; Lane, Patrick; Hillmer, J H; Lee, Heather; Vollmann, Peterson; Kahn, Kelley; Wlassowsky, Wlad;

Ortiz, CelsoSubject: FW: Parking License...Date: Monday, May 04, 2015 3:53:59 PMAttachments: Parking License - Oak Garden Hotel 5-4-00.pdf

Hi Dianne,

I just came from a meeting with Heather Lee concerning a proposed hotel project at 378 11th St in Chinatown that will require 75 off-street parking spaces at a remote site (but within walking distance). The developer is open to different options and is looking for the City to offer a solution. My latest thinking is that the Franklin 88 Garage would be the best suited for this purpose: the facility already has a similar agreement in place with another hotel (see attached); was built to operate as a valet garage operating 24/7; and has the capacity to meet the needs of both hotels while serving the needs of other monthly and transient parkers in the neighborhood. That said, I realize that there may be certain restrictions imposed by the DOF on what the City can do with this asset. In any event, I will need your help developing a license agreement in support of this project even if it means using one of the other City-owned garages in the Chinatown area. Please advise! Thanks,MichaelMichaelP.Ford,Ph.D.,C.P.P.Off-StreetParkingManager,PAIIITransportation Services DivisionBureau of Engineering & ConstructionCity of Oakland | Public Works Department | APWA Accredited Agency250 Frank H. Ogawa Plaza, Suite 4344 | Oakland, CA 94612(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 [email protected]|PublicWorksCallCenter | (510)615-5566www.oaklandpw.com | [email protected] | Mobileapp:SeeClickFix


Michael, Is this the document youre looking for? Esther

From: Ford, MichaelTo: Lane, Patrick; Hillmer, J HSubject: RE: Term Sheet for Hotel Developer.docxDate: Thursday, July 16, 2015 4:06:08 PM

Sounds goodIm sending the term sheet to Dhruv now and will work with Jens on the license per Dans instructions. Thanks!

From: Lane, Patrick Sent: Thursday, July 16, 2015 2:33 PMTo: Hillmer, J H; Ford, MichaelSubject: RE: Term Sheet for Hotel Developer.docx This looks fine to me. We can also discuss the option to purchase the garage. But before that happens we need to work out some issues around the operation of the facility and the owners association. Patrick Lane [mailto:[email protected]] Development Manager, City Of Oakland Economic & Workforce Development DepartmentProject Implementation Division 250 Frank H. Ogawa Plaza, Suite 5313 Oakland CA 94612 tel (510) 238-7362 fax (510) 238-3691

From: Hillmer, J H Sent: Thursday, July 16, 2015 12:24 PMTo: Lane, Patrick; Ford, MichaelSubject: Term Sheet for Hotel Developer.docx Hi Patrick and Michael: I have attached the term sheet. According to Pete Vollmann, we do not have to give them a 66-year license term and the depreciable life of this asset class according to the IRS is 39 years, but I understand that a longer term is desired by the Patels. In terms of the payment, I think that a 15-year amortization period with a balloon payment in year 5 is reasonable in light of the fact that the Patels would otherwise have to pay the entire amount upfront. Please let me know your thoughts. Jens

From: Dhruv PatelTo: Golde, JamesCc: Lane, PatrickSubject: Re: Franklin 88 Garage- Next StepsDate: Thursday, June 11, 2015 10:07:10 AM

James,

Any word on the next steps?

Dhruv Patel (510)-407-0308



From: [email protected] [mailto:[email protected]] Sent: Saturday, June 06, 2015 10:05 AMTo: Lane, Patrick; Golde, James; Ford, MichaelCc: Vollmann, Peterson; Flynn, Rachel; Sima PatelSubject: Franklin 88 Garage- Next Steps Hello All, I wanted to send out a summary of what we believe are the next steps in regards to parking for our hotel project. There has been a change in our

proposal and our application will be amended next week to include 19 more units bringing the total to 114 units within a 7 story structure. Here is what I believe is the course of action: 1) Michael will continue to get documents drawn up for the licensing option (note we have 114 units now).We understand that there is a certain fee per space and we spoke about ammortizing this fee over a longer term so it would not be a huge up front burden. 2) We will also consider purchasing the garage outright. We are willing to pay for the appraisal fee up front, however we are requesting to enter into an ENA for the sale of the garage. We have a strong interest in persuing this option. James- if this is agreeable we should get the ENA drafted and appraisal ordered ASAP. We are happy to bring by a check or pay the agreed upon appraiser directly. We want to continue working both avenues simultaneously so our application can move forward. If we can get it to a point where the terms of the license are agreeable perhaps Pete would consider approving the application with a condition that we either enter into the license agreement or purchase the garage. Please let me know your thoughts, I am avaialble for a call or meeting anytime next week. Dhruv PatelCOO / VP Development Ridgemont Hospitality PO BOX 2548 Oakland, CA 94614 510-407-0308 [email protected]

From: Ford, MichaelTo: Vollmann, PetersonCc: Lane, Patrick; Hillmer, J HSubject: RE: Terms of Parking LeaseDate: Wednesday, June 03, 2015 11:14:14 AM

Thanks, Pete! Patrick, Jens and I had a good meeting with the Patels. Patrick will share some of the details to make sure all is doable from your point of view. Michael

From: Vollmann, Peterson Sent: Wednesday, June 03, 2015 10:18 AMTo: Ford, MichaelSubject: Terms of Parking Lease Michael- I just your voice mail. The Planning Code just says that the parking must exist for the duration of the activity. However, if they are paying what is equivalent to the in-lieu fee I dont see why we cant make an exception as long as there is a very long term lease. Peterson Z. Vollmann, Planner III | City of Oakland | Bureau of Planning | 250 Frank H. Ogawa, Suite 2114 |Oakland, CA 94612 | Phone: (510)238-6167 | Fax: (510) 238-4730 | Email: [email protected] | Website: www.oaklandnet.com/planning

From: Ford, MichaelTo: Hillmer, J H; Vollmann, PetersonCc: Lane, PatrickSubject: Re: Term Sheet for Hotel Developer.docxDate: Tuesday, June 02, 2015 3:55:37 PM

Thanks, Jens!

Pete -- Can you please confirm the minimum term that we need to offer the Patels for their hotel project! 66 years?

Cheers,Michael

Michael P. Ford, Ph.D., C.P.P. Off-Street Parking Manager, PAIIITransportation Services DivisionBureau of Engineering & ConstructionCity of Oakland | Public Works Department | APWA Accredited Agency250 Frank H. Ogawa Plaza, Suite 4344 | Oakland, CA 94612(510) 238-7670 | (510) 238-7415 Fax | (510) 410-2680 [email protected]


From: Hillmer, J HSent: Tuesday, June 2, 2015 1:41 PMTo: Ford, Michael; Lane, PatrickSubject: Term Sheet for Hotel Developer.docx Hi Michael and Patrick: In anticipation of your meeting with the Hotel Developer tomorrow, I have prepared a draft of a preliminary term sheet for the contemplated transaction. Please review and make changes as you see fit. One question would be: If we are offering an initial term and an extension term, are we going to charge them a fee of exercising the extension? If so, that should be reflected in the term sheet. We could, of course, just give them one term of 66 years, which would take care of that issue. Please let me know your thoughts. Jens

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