Alameda Point Development

Background

In 1993, Congress threatened closure of the Alameda Naval Air Station (NAS). In April 1994, the City and County of Alameda signed a Joint Powers Agreement (JPA), and established the Alameda Reuse and Redevelopment Authority (ARRA). The ARRA was recognized by Department of Defense as the responsible entity for submitting and completing the Community Reuse Plan for NAS Alameda. A year prior to its closure, in January of 1996, the City of Alameda adopted the NAS Alameda Community Reuse Plan, a 'roadmap' for the conversion of the former Naval Air Station to civilian use.

The Reuse Plan was prepared for the Alameda Reuse and Redevelopment Authority (ARRA), an agency created and governed by the City Council, with extensive citizen input solicited by the Base Reuse and Advisory Group (BRAG), now known as the Alameda Point Advisory Committee (APAC). The Reuse Plan established the following vision for the reuse of the former NAS:

Developer Selected

Firms vie to build at Point

Twenty interested parties attend informational meeting for development deal at former Navy base

By Alan Lopez, Alameda Times Star, November 1, 2006

Twenty development firms or partnerships have informed the city that they're interested in building at Alameda Point, six weeks after a high-powered development team pulled out of the running.

Representatives from the 21 interested parties attended an informational meeting held Oct. 30. It was one of the first hoops through which the firms must jump through to be considered a viable candidate for a development deal at Alameda Point.

On Dec. 4, the developers still vying for the city's attention will need to submit a $20,000 non-refundable deposit, references and proof that they can fulfill the financial obligations attached to the development plan.

"We'll feel good if we get three actual respondents," said Debbie Potter, Alameda's Base Reuse and Redevelopment Manager. "We will consider that to be extremely successful."

The firms or teams that have shown interest include: Cattelus Development Corp./Prologis, which is planning to build the proposed Alameda Landing mixed-use redevelopment at the former Fleet Industrial Supply Center; Warmington Homes, the co-developer of the Bayport homes development on the city's West End; and Forest City/MacFarlane Partners, which is constructing a $107 million apartment and retail complex one block north of the Fox Theater in downtown Oakland.

The recent interest from the developers has emerged in response to a "request for qualifications" -- a recruitment document Alameda released on Oct. 19.

The city's recruitment effort followed the Sept. 21 announcement that the development team Alameda Point Community Partners was withdrawing from a $108 million deal to build and reuse commercial and retail space on the east end of the former Naval Air station as well as build up to 1,800 homes there.

The developer ultimately chosen to replace the partners group will be required to submit a $1 million deposit the city will keep if a development deal between the two parties and the U.S. Navy -- the current owner of the land -- is not signed within two years.

INTERESTED FIRMS

The development firms or teams that have shown interest in building at Alameda Point are: APTO, Inc.; Brooks Street; Carlson, Barbee, Gibson; Catellus/Prologis; Cherokee Investment Partners; Constructive Community Homes; Corky McMillin Co.; Earth Synergy West, Inc.; Forest City/MacFarlane Partners; Kenova Partners; Kenwood Investments; Khyber Investments, LLC; Lennar Urban; Lend Lease Communities; LNR Property Corp.; Marinship Development Interest; Sares Regis; Standard Pacific Homes; Summerhill Land Acquisition. Co.; SunCal Companies; and Warmington, Encinal Terminal.

Point Developer Signs Off on Deal

Years of work lay ahead for Irvine-based SunCal Companies, according to city officials

By Marc Albert, Alameda Sun, July 20, 2007

After repeated closed-door meetings over the past two months, city officials and developer SunCal Companies hammered out a far ranging contract allowing the firm to take the next steps towards developing the former Naval Air Station Alameda.

SunCal, which already signed off on the deal, was waiting to hear if city officials would ratify the 43-page document or seek further amendments.

The meeting of the Alameda Reuse and Redevelopment Authority (ARRA), essentially the Alameda City Council, was held yesterday after this newspaper's deadline.

The document, an "exclusive negotiation agreement," gives SunCal two years to clear various bureaucratic hurdles and line up agreements with environmental regulators and the U.S. Navy.

Irvine-based SunCal Companies was selected as the so-called master developer for the property, now known as Alameda Point, on May 8. It was something of a surprise as Denver-based Catellus, a division of ProLogis, and Miami's Lennar Urban were jointly selected earlier. The two firms were dismissed after failing to work out an agreement between them.

SunCal has already paid a $100,000 deposit on the land and will chip in another $900,000 once the agreement is signed by the city.

This raises some concerns for Councilwoman Marie Gilmore, a proponent of SunCal in the earlier competition. "I'd like to know how much equity they are willing to pay up, and if they are seeking a large equity partner how are they going to maintain control of what gets done," she said Wednesday prior to the ARRA board meeting. Gilmore said the city hasn't faced problems in the past with similar development deals, although Alameda Point is certainly much larger than any other project attempted in recent years.

Gilmore said she wanted some assurances that SunCal had enough funding lined up to proceed with the deal, noting that Alameda Point Community Partners, a consortium of major housing developers that was selected as master developer for the site several years ago, pulled out of the project because of financing issues and the stalled housing market.

Among the stipulations of the proposed agreement, the city reserves the right to continue leases on several buildings including City Hall West, Fire Station No. 5, and a site being used by Alameda Power & Telecom. If SunCal wants any of those buildings, it must pay all relocation costs.

Construction of what has been billed as an entirely new neighborhood that will include roughly 1,800 housing units, offices, retail stores and parks won't get underway any time soon. Before the first shovel full of dirt is turned, SunCal must complete an alphabet soup of documents with myriad public agencies covering everything from historic buildings and toxic clean up to a "predator management agreement."

Over the next two years SunCal will also have to pay $2,730,000 towards the salaries and benefits of various city officials and consultants who are expected to spend a considerable amount of time on the project.

Other Developments at Alameda Point

Alameda Point Collaborative

In January of 1996, the Alameda Reuse and Redevelopment Authority (ARRA) adopted its Community Reuse Plan which includes a regionally-based, envelope of opportunity to address gaps in Alameda County's homeless continuum of care system. The opportunities negotiated by the Alameda County Homeless Base Conversion Collaborative (now called The Alameda Point Collaborative) include: 241 housing units; land and buildings to be used for supportive services, employment training and economic development, including a 70,000 square foot community center; and a 90-slot child care center and a 15% first source hiring agreement. All properties will be conveyed to collaborative members through no-cost, fifty-nine year leases.

After 1999, the Alameda Point Collaborative opened its first set of transitional and permanent housing units at Alameda Point and begin offering needed support services. In preparation, the Collaborative has been planning for the creation of an integrated, coordinated service program at Alameda Point which maximizes the resources available to all homeless persons utilizing the housing at the base, as well as making those services available to other needy Alameda residents. When completed, the Collaborative hopes to have created a seamless homeless service system that utilizes common intake and assessment procedures, establishes personal and career goals for each client, and has access to needed support services including employment training and placement opportunities.

More on Toxic Cleanup at NAS

Based on results from investigation work begun under the Department of Defense's Installation Restoration Program in 1986, the Navy identified 20 installation restoration (IR) sites where there is possible soil, sediment, and/or groundwater contamination. By 1990 there were 28 IR sites grouped into 10 Operable Units (Ous).

The Navy's toxic cleanup program provided a presentation at the July 2001 RAB meeting on both the current fiscal year budget and the projected future annual budgets. The presentation showed 144 million dollars, 68 percent of the remaining costs, occurring after 2007. This raises serious doubt that the Navy will achieve its stated cleanup objective, completing all work by the year 2009.

Environmental Impact Report Alameda Point General Plan Amendment - December 2002

INTRODUCTION

In November 2001, the City of Alameda issued a Draft Environmental Impact Report (EIR) for a proposed Alameda Point General Plan Amendment designed to implement the 1996 Alameda Naval Air Station (NAS) Community Reuse Plan. After circulation the 2001 Draft EIR for public comment and considering the comments received from Alameda residents, neighboring jurisdictions, and regional transportation agencies, the City of Alameda decided to revise the project description by reducing the development intensity proposed in the General Plan Amendment (GPA). The proposed development intensity in the GPA was reduced in response to concerns about capacity of the existing roadway network in Alameda and Oakland to accommodate full buildout of the NAS Alameda Community Reuse Plan prior to consideration and implementation of alternative transportation solutions to improve the capacity of the roadway network and estuary crossings. Consequently, in March 2002, the City of Alameda issued a new Notice of Preparation (NOP) with a new project description that corresponds to the environmentally-superior alternative identified in the 2001 EIR (referred to in the 2001 Draft EIR as �the mitigated Reuse Phase I�). The new GPA, which is the subject of this EIR and is described in more detail in Chapter III, Project Description, generally differs from the previous 2001 GPA as follows:

• The total amount of light industry/business park/office use that would be allowed is reduced by approximately 2.96 million square feet to reduce traffic generated by reuse of Alameda Point
• The total amount of marina-related industry that would be allowed is reduced by approximately 121,750 square feet to further reduce traffic
• The total number of housing units is increased by 456 to improve the jobs/housing balance at Alameda Point, ensure conformity with the City�s draft Housing Element, and further reduce the potential number of commuter-based �off-island� trips

At full buildout, the new GPA may result in approximately 6,126 jobs and 1,928 housing units at Alameda Point. In 1997, immediately prior to base closure, NAS Alameda had a work force of approximately 18,800 and 343 housing units on the main base. Currently, there are approximately 1,000 jobs and 268 occupied housing units at Alameda Point. For comparison purposes, the 2001 GPA would have resulted in approximately 16,636 jobs and 1,472 housing units at full buildout. For the purpose of determining the significance of potential environmental impacts from the GPA, the baseline condition used by this EIR generally reflects current or year 2002 conditions. This is intended to provide the most conservative (most environmentally-protective) assessment of project impacts.

Note: The 343 housing unit figure does not include the 582 units at Coast Guard Housing or the 590 units known as �East Housing".

Alameda Point Golf Course

On March 1, 2005, notice was given of the availability of a revised draft Environmental Impact Report (DEIR) pursuant to the California Environmental Quality Act for the proposed Alameda Point Golf Course, located on 215 acres at the former Alameda Naval Air Station in the City of Alameda. The project consists of an 18-hole links-style golf course and public open space with associated facilities plus a nine-hole short course, clubhouse and 300-room hotel. An amendment to the City�s General Plan is required in order to designate the public access trail as the Bay Trail. Pursuant to a Use Permit, up to 2 million cubic yards of dredged material would be used to construct the course, and be stockpiled and de-watered on the site.

In July 2004, a Draft Environmental Impact Report (DEIR) for the proposed Alameda Point Golf Course was prepared pursuant to the California Environmental Quality Act for the proposed Alameda Point Golf Course, located on 215 acres at the former Alameda Naval Air Station in the City of Alameda. The Alameda Reuse and Redevelopment Authority (ARRA) is the Lead Agency for the Project. The DEIR was made available for the required 45-day review period beginning July 26, 2004. A Notice of Availability for the DEIR was distributed indicating that comments on the DEIR could be submitted at a public hearing held on August 23, 2004, or submitted in writing to the Development Services Department. The comment period on the DEIR concluded on Friday September 10, 2004.

Subsequent to the publication of the DEIR, it was determined that wetlands exist on the Project site. Seasonal wetlands were discovered during a site reconnaissance conducted by the U.S. Navy for a radiological survey that included the western portion of the golf course site. More detailed wetland delineation surveys were completed to determine the precise location and size of the wetlands. The DEIR is being revised to address the presence of seasonal and tidal marsh wetlands on the project site. This is considered significant new information that requires recirculation of the DEIR for public review.

Public comments were received until April 15, 2005.

Section 7: Next Steps in the Planning Process

Source: Preliminary Development Concept, June, 2005

In December 2003, the City of Alameda Reuse and Redevelopment Agency (ARRA) initiated an 18-month, ARRA-funded pre-development period to complete two tasks: the PDC for Alameda Point prepared with the assistance of the Alameda community, and a Property Conveyance Strategy developed with the US Navy for the conveyance of property from the Navy to the ARRA.

During the last year, in addition to the public meetings on the PDC, a City team has been meeting with the Navy to develop the conveyance strategy. This effort is expected to result in a joint statement of conveyance principles and a timetable for property conveyance. The ARRA expects that a Phase I conveyance will occur by Dec 2006.

In July 2005, the PDC will be presented to the ARRA Board for its review and comment. The presentation will include a summary of the major community comments on the PDC received at the last public workshop on June 8, 2005. An important purpose of the presentation will be to articulate those areas or issues within the PDC that still require signifi cant additional work before a fi nal development plan can be approved for any area of the base.

Based upon the ARRA response to the PDC and the proposed conveyance strategy, the City�s selected master developer, Alameda Point Community Partners (APCP), is required to make a decision as to whether it wishes to proceed with the project. If APCP choose to proceed, work will begin on a Master Plan for Alameda Point that builds upon the PDC but includes further details about particularly the fi rst phases of the development plan. The City will begin work on an Environmental Impact Report (EIR) to assess the entire Master Plan at a programmatic level and the Phase I proposal at a project level. Upon completion of the Master Plan and environmental review process, the City should be in the position to consider an application package including rezoning Alameda Point consistent with the General Plan and approving development plans for the initial phases of the project.

The length of the environmental review and entitlement process for the fi rst phase of the development will be largely determined by the schedule for the conveyance of the fi rst phase of the property from the Navy. At this time, it is anticipated that the entitlement and environmental review process will commence in the summer of 2005 and conclude with certifi cation of an EIR and approval of Phase I entitlements in late 2006 or early 2007 to coincide with the fi rst phase conveyance.

During the period from summer 2005 to winter 2006, APCP and the City will continue work to resolve remaining issues or areas within the PDC that the community and the ARRA Board believe need additional consideration. To facilitate this process, City staff will continue to hold public workshops over the course of the 18-month period to solicit public comments on the evolution of the PDC into a fi nal development plan for the Phase I development. Although the exact scope and schedule for the public engagement plan has not be developed, the Planning Board has asked that staff present a draft public engagement plan and schedule to the Planning Board for its consideration and comment no later than August, 2005 so that the Planning Board and the public will have a full understanding of the alternative approaches and have some input into the fi nal public engagement plan.

As described above, City staff will be managing the preparation of an EIR for the project. As currently envisioned, the EIR will include an analysis of alternatives. The range of alternatives to be analyzed will be determined after a public scoping for the EIR is completed, but it is anticipated that the �Non-Measure A� alternative developed during the PDC public meetings will be one of the alternatives considered. During the public scoping period for the EIR, the public may continue to suggest changes or refi nements to this alternative.

Revised Version, December, 2005

7. NEXT STEPS IN THE PLANNING PROCESS

Navy has questions on Point transfer

By Susan Fuller, Alameda Journal, July 1, 2005

Progress on the transfer of Alameda Point to the city is still moving forward, despite the nearly uneventful passage of a deadline for decisions Thursday.

The Navy met the deadline, by responding to the city's most recent proposal in a letter received Monday. However, its response -- that there are still some outstanding issues -- wasn't the affirmative answer that would have triggered the next decision -- the master developer's option to move forward with the project, or to pull out.

Still, all three parties are willing to keep talking, in hopes of reaching a deal shortly.

The principal outstanding issue is the valuation of the former Naval Air Station, said Stephen Proud, the city's project manager for Alameda Point.

The city is hoping for a no-cost conveyance of the property.

"We've done a lot of work and are close to agreement," he said. "We're encouraged by the fact that they still think there's opportunity for agreement. The good news is that they haven't said 'No'."

No discussions between the city and Navy are scheduled. Proud expects the deal will be completed in 30 to 60 days.

"It's a milestone," said Aidan Barry, the master developer's project manager. "I hope we can wrap it up in the next 30 days. I'm probably pushing a little harder."

During a tense time between the city and master developer Alameda Point Community Partners 18 months ago, the June 30 deadline was set for two things: the Navy response to the city's acquisition proposal and the city's completion of a planning document called the Preliminary Development Concept.

The development concept builds on residents' vision for Alameda Point, using new information about economic viability, land use constraints and the environmental conditions at the former base.

Earlier documents -- the 1996 Community Reuse Plan and 2003 General Plan amendment -- talked in general terms about what Alameda residents wanted to achieve -- economic self-sufficiency, preserving historic buildings and minimal impact on transportation.

The development concept is the result of six community meetings in the last year.

$100 million deal struck for Alameda Point City and Navy reach accord for transfer of former Naval air station

By Kimberly S. Wetzel, Alameda Journal, July 21, 2006

After years of negotiations, city officials announced late this week that they and the Navy have hammered out a $100 million deal to acquire and develop Alameda Point, the former naval air station site.

The announcement comes after several attempts and failures at nailing down an agreement over the years. Officials on both sides have sparred over cost and clean up of the area, which was designated a hazardous waste site in 1999.

"We know that it has taken us a long time to get here," said Assistant City Manager David Brandt. "With a project of this size, involving such a large federal entity, you have to be prepared for the long haul."

The Navy closed the base in 1997 as part of its Base Realignment and Closure (BRAC) program.

Under the terms of the tentative agreement, the developer, Alameda Point Community Partners, will pay just more than $100 million for the 1,734-acre slab of land that makes up the west side of the city, Brandt said.

Plans for development include 1,700 homes, park space, a wildlife refuge and a hotel and golf course, among other things. The project will eventually produce more than 7,000 permanent jobs.

The developer has until Aug. 21 to sign off on the deal, and if it does, the city and Navy will move forward with formal approval of the agreement on both sides.

"We're ready to continue rolling up our sleeves to tackle the hard work it's going to take to integrate Alameda Point with the rest of the city," Brandt said.

Aidan Barry with Alameda Point Community Partners said they have received the draft term sheet and are now in the process of evaluating it. Barry expects to respond to the agreement before the Aug. 21 deadline.

Brandt said he sees no reason why APCP wouldn't sign off, as the group was involved in the negotiation process and is aware of the cost and issues associated with clean up of the 35 areas designated as toxic on the land.

Point Developer Agrees to Proceed

By Ryan White, Alameda Sun, August 25, 2006

The developer chosen by the city of Alameda to rebuild the former Alameda Naval Air Station announced to the city late last week that they have decided to proceed with the redevelopment. But according to at least one city official, the developer�s ongoing participation in the Alameda Point project was far from certain.

The developer chosen by the city of Alameda to rebuild the former Alameda Naval Air Station announced to the city late last week that they have decided to proceed with the redevelopment. But according to at least one city official, the developer�s ongoing participation in the Alameda Point project was far from certain.

Alameda Point Community Partners (APCP) had until Aug. 21 to inform the city whether or not they wanted to continue with the Point�s development under the terms ironed out by the city and Navy in late July. According to the deal, the site would be transferred from the Navy to the city in exchange for $108 million, a tab to be paid by the developer.

APCP General Manager Aidan Barry described his group�s stance as �a conditional election to proceed,� meaning that the developer still has some outstanding issues to resolve with the city before moving forward with the redevelopment process.

�It�s a huge step,� Barry said of the group�s decision to move forward. �We�re very excited about it.�

But APCP still wants to work on establishing some milestones for the project as it moves forward.

�We need some feedback from the ARRA board,� Barry said. He declined to further specify what issues remain unresolved.

APCP is made up of Shea Homes, Shea Properties, Industrial Realty Group, Centex Homes and Morgan Stanley, with the latter providing financial backing.

It�s a group well-represented by residential home developers, and with the housing market showing recent signs of cooling off, there was concern among some city officials over the past few weeks that APCP might not agree to the deal.

�They (APCP) had indicated that they were having difficulty proceeding with the project,� said city councilman Tony Daysog, who was present at a closed-session meeting between APCP and the city a few weeks ago. In particular, Daysog says that the home builders in APCP were concerned about chills in the housing market, given that current plans for the Point call for upward of 1,700 residences.

Worried that APCP might back out, city staffers initiated talks with about a half-dozen other developers, Daysog said.

�There were some other developers who would consider moving forward with the project under the Preliminary Development Concept�s expectations,� he said, referring to the city�s redevelopment plan for the Point.

�They�ve seen other developers are willing to pick up the ball if they drop it,� Daysog said. �I think that�s what prodded APCP.�

Debbie Potter, the base reuse and redevelopment manager, said that these preliminary discussions with other developers didn�t get very far, but did acknowledge that the cooling home market was a factor in recent discussions.

�I think (the discussions) were consistent with recognizing the residential home market has been slowing down,� Potter said.

Barry believes the city�s decision to talk with other prospective developers was merely good business sense, a back-up plan should APCP opt out.

�We have an exclusive negotiation right with the city,� Barry said. �They never violated their agreement.�

The city�s redevelopment board will meet with APCP today in another closed-session meeting to try to finalize the agreement between the two sides.

A final master plan and an environmental impact report (EIR) will then need to be completed during an 18 to 24 month �entitlement� phase, in which the developer will seek a series of regulatory approvals.

Given the Point�s Superfund status, the site will need an extensive, multi-phase cleanup to remove toxic wastes left behind by the Navy after the base closed in 1997.

�This will be a very complicated EIR,� Barry said.

$40.3 million of the property�s $108.5 million price tag will fund the cleanup�s first phase. The Navy will be responsible for the second and third phases of the cleanup.

According to Barry, September 2008 would be the earliest construction might begin. In addition to the more than 1,700 homes, current plans call for 350,000 square feet of retail space and up to 3 million square feet of commercial office space.

Selection of Point developer postponed

Council expresses concern over builders' commitment to 'green' and sustainable growth

By Alan Lopez, Alameda Journal, February 8, 2007

Amid a flurry of nonstop questions, comments and concerns coming from elected officials as well as residents, the City Council this week postponed the selection of a potential master developer for Alameda Point.

The decision followed a meeting Wednesday night lasting nearly five hours, which included presentations from the four developers vying for the position, intense questioning by the council and public comment from more than a dozen residents.

The development teams -- Catellus, Lennar Urban, SunCal Companies and United World Infrastructure -- answered questions at the meeting while many others will be answered in writing.

The concerns from council members revolved primarily around the developers' commitment to "green" and sustainable building; their ability, financial and otherwise, to follow through with the redevelopment of 700 acres of the former Alameda Naval Air Station; their transportation plans; and their relevant experience managing similar projects.

Several residents, meanwhile, lobbied the council to strongly consider the proposal from United World Infrastructure.

"It is visionary, innovative, forward-thinking," said former City Council candidate Mike Rich. "We have an opportunity to do something unique."

UWI is proposing what has been dubbed a "green island" community intended to attract industries involved in alternative energy and transportation technologies and integrating that with housing, parks and commercial space.

UWI however, has been labeled "weak" in most of criteria city staff has researched, including relevant experience related to Naval base reuse, development competencies and qualifications, its financial capability and approach and its ability to fix or repair land that has been made toxic by exposure to Navy and industrial chemicals.

The group did a receive a "strong" rating for its willingness to pay $108.5 million for 700 acres of Navy-owned land. By contrast, Lennar was labeled "weak" in that category, and Catellus and SunCal were dubbed "moderate."

Still, council members expressed some skepticism.

"How does this business deal work for you?" Mayor Beverly Johnson asked the UWI team. "Is this too good to be true? Why are you willing to do this, to put up $108.5 million to do what we think of as a very challenging and difficult project?"

Written responses to some of the questions will likely be due by the developers in about two weeks, base reuse and redevelopment manager Debbie Potter said.

A public meeting for the City Council, acting as the Alameda Reuse and Redevelopment Authority, to decide which developer will move into further negotiations may happen as early as March 21.

The chosen party will enter into an exclusive 24-month negotiating period where an attempt will be made to strike a deal between the city, the developer and the Navy for the land's purchase and development.

Development team Alameda Point Community Partners was selected for similar negotiations in a process the city underwent after the Navy exited from the base 10 years ago.

After several years of negotiations and the establishment of a preliminary development concept for the land, the partners group withdrew from the project last fall.

The city subsequently started a new recruitment process and received applications from five developers in early December. The Corky McMillin Companies dropped out the running several weeks ago, leaving the remaining four.

Several residents took the opportunity Wednesday night to pan certain aspects the preliminary development concept the city established with the partners group and which the city will use as a starting point for negotiations with the new developer.

That concept calls for the building of up to 1,800 homes as well as commercial and retail space at the former air station. A member of the Alameda Architectural Preservation Society said it should include a greater effort to reuse more than 86 historic buildings at the site.

Resident Jon Spangler went a step further and said the plan, approved just a year ago, was already out of date.

"Anyone who thinks this is state-of-the-art stuff and anything Alameda needs is way behind the curve," he said.