Council Fills Long-Vacant Alameda Point Hangar With Record-Rent Poseidon Lease
City Council • AlamedaOctober 21, 2026
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An autonomous cargo aircraft startup is set to move into a hangar that has been empty for about six years. The Alameda City Council voted 5-0 on Oct. 20, 2026, to introduce a seven-year lease at a record rent, even as the building's aging roof remains an open liability for the city. The council also redesigned a collision-prone intersection, moved routine contract approvals to staff and kept protection for the Gibbons Drive tree canopy on the table.
- Poseidon Aerospace lease of Building 11 advances 5-0 at a record $1.50 per square foot, with 150 jobs targeted.
- Gibbons Drive trees: Council orders a draft protection ordinance 4-0 for Dec. 1 review.
- Pacific Avenue and Wilma Chan Way redesign approved 5-0, banning through traffic and left turns.
- Staff contract authority doubles to $150,000 on a 4-1 vote, after 36 years unchanged.
- Petition with 1,075 signatures seeks data center moratorium as a $250,000 economic strategy contract wins approval.
A Startup Lands in a Six-Year Vacancy
Why it matters: Building 11 at 1190 West Tower Avenue is a hangar of roughly 110,000 square feet that has sat vacant about six years. Filling it brings revenue and jobs to Alameda Point, but the roof is past its useful life.
Where things stand: The council introduced an ordinance for a seven-year lease with two five-year options. It also adopted two resolutions: an $828,905 appropriation for the broker commission and a finding that the site is exempt surplus land. The Surplus Land Act requires cities to offer surplus public land for affordable housing and other uses unless an exemption applies. The item needed four votes and got five.
The deal is triple net, meaning the tenant covers taxes, insurance and maintenance. Rent is $1.50 per square foot with a 3.5% annual escalator. That totals about $13M over the first term and potentially $29M more if Poseidon exercises both options. The terms include a rent credit equal to about 12 months of base rent, spread over 24 months, and an estimated $2.5M to $3M in tenant improvements. The commission to JLL is paid upfront, and staff said Poseidon's security deposit exceeds the fees.
Poseidon is a 2023 startup with a $60M Series A. It builds autonomous cargo aircraft from composite carbon fiber. Its staff has grown to 45, and it is targeting 150 jobs by the end of 2027. "Our fuel source is MOGAS, which is unleaded," said David Zaganoff, Founder and CEO of Poseidon Aerospace. Madeline Sadek, President and CEO of the Alameda Chamber and Economic Alliance, voiced strong support.
The other side: Council members asked about assignment protections and Poseidon's existing license agreement for the site. Councilmember Tracy Jensen said the license-first path is "not as transparent as it could be." Mayor Marilyn Ezzy Ashcraft raised the roof, noting the "ballpark roof replacement estimate for the complex is $10.6 million." She asked that this cost be weighed against lease revenue.
Decisions and stakeholder impacts: The vote was For: 5, Against: 0, Absent: 0. Poseidon gains a large production space, and the city gains a paying tenant in a long-dormant asset. The deferred roof bill remains the city's to manage.
What's next: A second reading and a 30-day waiting period come next, with the lease expected around Dec. 3.
Gibbons Drive Canopy Gets a Legal Lifeline
Why it matters: Neighbors fear losing a century-old row of liquid amber trees. Meanwhile, the city must fix sidewalks that do not comply with the Americans with Disabilities Act (ADA).
Where things stand: Councilmember Tony Daysog sought to add the Gibbons liquid ambers to municipal code Section 13-21.7. That change would require Historical Advisory Board review before any removal. "I think a case can be made that those trees are of a cultural and historic significance," Daysog said.
Seven public commenters urged protection. Peter Aston cited a petition with 1,250 signatures and a survey in which 93% favored preserving healthy trees or limiting removals. Lorraine Perry called the trees irreplaceable and opposed the city's phased removal approach. Lori Zupan noted that two advisory bodies had not recommended the current plan. Eileen Dubois asked why Gibbons is treated differently and urged preservation-first engineering. Marlene, a Gibbons resident, backed the designation despite the burden of leaves and seed pods.
The other side: Staff said a 2011 tree removal policy already requires alternatives and public posting. A draft plan is also out for comment. Responding to fears about the plan's cap of 20% removal per five years, Public Works Director Erin Smith said: "It is an absolute maximum." Vice Mayor Michele Pryor questioned whether the ordinance would be redundant and wanted more detail, including ADA effects. "I think that there's just more information that we need," Pryor said. The Mayor wanted advisory body input first.
Decisions and stakeholder impacts: Councilmember Greg Boller offered a middle path. "I would just move to ask the City Attorney's Office to have a potential draft ordinance available," Boller said. His substitute motion directs that office to prepare a draft that considers ADA impacts. It passed For: 4, Against: 0, with Jensen recused. Tree advocates keep historic protection alive, while disability access remains part of the analysis.
What's next: The Historical Advisory Board meets Nov. 5. The staff package and draft ordinance return to council Dec. 1.
Pacific and Wilma Chan Get a Diverter
Why it matters: The intersection has a history of broadside collisions. It is also a key crossing on the city's low-stress bikeway network.
Where things stand: Senior Transportation Coordinator Susie Hofstadter described Wilma Chan Way as four lanes with prevailing speeds of 30 mph and limited sight distance. The design limits Pacific Avenue to right-in/right-out turns and adds a signal triggered by pedestrians and cyclists. It also adds a separated center bikeway and preserves emergency access. The Transportation Commission endorsed the plan unanimously.
"We cannot have up to one person getting injured per year on average at an intersection," said Boller, framing the vote around Vision Zero, the goal of eliminating traffic deaths and serious injuries. Zach Bowling, a public commenter, tied the project to honoring Wilma Chan and cited 17,000 vehicles per day.
The other side: Outreach surfaced concerns about cut-through traffic on the 700 block of Pacific, speeding along the corridor and the northbound left turn at Buena Vista Avenue. Nearby resident Michelle MacGyver supported the safety goals but objected to placing the signal on the far side of the crossing. The city engineer said near-side poles would also be installed.
Decisions and stakeholder impacts: The vote was For: 5, Against: 0, Absent: 0. Cyclists and pedestrians gain a protected crossing. Drivers lose through and left-turn movements.
What's next: Construction is hoped for summer 2027.
Council Hands Staff More Signing Power, Debates Licenses
Why it matters: About 20 contracts a year would no longer go before the council.
Where things stand: The ordinance amends Section 2-59.3 and raises contract authority for the city manager, city attorney and city clerk from $75,000 to $150,000. It also raises authority to settle claims and the lower department-level tiers. Senior Financial Analyst Carlos Figueroa cited about 170% regional inflation since 1990. He noted that peer cities set limits between $85,000 and $200,000. Pryor asked whether the numbers should be revisited periodically. No reporting requirement exists, but the city manager offered a first-year summary.
The other side: "I would prefer the threshold be $100,000," Daysog said. Ashcraft countered: "I think this is an appropriate ask, and I'm certainly prepared to support it."
Decisions and stakeholder impacts: The ordinance was introduced For: 4, Against: 1. The dissenting member was not identified. Procurement speeds up, with less public visibility.
A separate referral from Jensen sought public notice and council review of city property licenses longer than one week. "I would like to direct staff to come back with a policy recommendation for additional review of licensure agreements," Jensen said. She cited licenses with Geobotics ($8,000 a month) and Smith Dennison Construction that were not disclosed to the council.
Staff said licenses can be terminated, serve temporary uses and take about 12 weeks less to execute than leases. The acting city attorney said licenses that run past one year trigger Charter Section 310. The city manager pledged to over-communicate and could report licenses periodically. "To call that not transparent is a bit misleading," Ashcraft said. After a tense exchange over time limits, the council took no action.
Data Center Fears Shadow Economic Strategy
Why it matters: Residents are organizing against AI data centers on city land. Meanwhile, a new plan will define which industries Alameda courts and which it avoids.
Where things stand: During general public comment, Amos White submitted a petition with 1,075 signatures. It asks for a moratorium on leasing city land for AI data centers, a public hearing and protections for water and electric rates. White cited 575 moratoriums across 46 states, including one in Richmond. Dashiell Moreno, a student, raised concerns about noise and heat near Encinal. Michael Schwartz put his opposition on record. Katya Murthy urged clear definitions and procedures and thanked the council for a public memo on Longshot.
Decisions and stakeholder impacts: The council approved a contract with Harris and Associates, not to exceed $250,000, for an economic development strategic plan (For: 5, Against: 0, Absent: 0). Daysog asked that the plan examine microbusinesses, economic gardening and small industrial space. Jensen asked that it define organizations the city does not want, citing data centers and ICE detention centers. The Mayor said the council opposes ICE detention facilities. Economic Development Manager Dwayne Dahlman said community outreach on data centers is starting.
What's next: Plan data is due ahead of the January 2027 council session.
- Closed session: Council authorized two workers' compensation settlements and gave direction on potential litigation against Astra Space.
- Consent calendar: Approved unanimously, supporting the $5.1 billion Prop 1 housing bond and opposing Prop 43.
- Alameda Museum: Report accepted 5-0; repatriation to the Confederated Villages of Lisjan is set for 2026 into 2027.
- Storm readiness: The Emergency Operations Center is partially activated; king tides are expected around Thanksgiving, Christmas and Jan. 20-23.
- Voting: The Independence Plaza vote center is open Oct. 24 through Nov. 2; additional centers open Oct. 31.
Looking ahead: The Mayor nominated Zach Bowling to the Housing Authority Board of Commissioners, with a council vote expected Nov. 4. The Gibbons Drive package returns Dec. 1.