Faction Brewing's Lease at Alameda Point Is Getting Reworked

Faction Brewing, the brewery that's been pouring beer at Alameda Point since 2018, has a lease change coming before the City Council. On September 1, council members will vote on introducing an ordinance for a third amendment to Faction's lease for Building 22, Suite 200 at 2501 Monarch Street.

Faction was Alameda Point's first local brewery, and its taproom, patio and regular food trucks have made it one of the go-to hangout spots on that side of the island. If you've been to a show or event there, this lease sits behind all of it.

What the amendment would change

Faction's original lease started April 17, 2018, for a 10-year term with two 10-year renewal options built in, according to the city's agenda materials. The new amendment on the table would:

• Extend the initial lease term from 10 years to 13 years
• Swap the two 10-year renewal options for a single 2-year option
• Set a new repayment schedule for rent Faction still owes

The city's staff report ties the unpaid rent back to the COVID-19 pandemic and the Shelter in Place orders that hit Faction's business hard, along with earlier lease amendments that already tried to work through that impact.

Why this matters if you drink at Faction

The vote itself is procedural, an ordinance introduction that needs four council votes to move forward. But it matters because it's about whether one of Alameda Point's anchor small businesses stays put on stable footing. Faction turned an empty former Navy building into an outdoor beer garden with a view, and that only keeps working if the lease underneath it makes sense for both sides.

This isn't the first time the lease has been reworked

This would be the third amendment to Faction's original 2018 deal, following a first and second amendment that are already on file with the city as separate exhibits in the council packet. Three rounds of changes on one lease says something about how tough those first pandemic-era years were for a business that depends on people showing up in person to drink beer together.

The meeting starts at 7 p.m. September 1 in the Council Chambers at City Hall, 2263 Santa Clara Ave. Check the Pulse's events calendar for the full agenda when it's posted, and see our other Alameda Point coverage for more on what's changing out there.