DE-Shaw

Outline

Background
Two Remaining Mandatory Milestones
.Finalized Navy Term Sheet
.Disposition and Development Agreement

Discussion
.Denial of SunCal Modified OEAOptional Entitlement Application
..Findings for Denial
...Lack of Commitment to Mixed-Use Transit-Oriented Development
...Jobs/Housing Imbalance
...Need for Economic Development Strategy
...Traffic Impacts
...Impacts to Endangered Species
...Risk of Project Infeasibility and Adverse Outcomes
...Lack of Community Support

..Responses to Questions from Alameda's July 7, 2010 Meeting

Excerpt:

In the rocky suburbs of Las Vegas, meanwhile, Angelo, Gordon & Co. recently paid $35 million for land parcels zoned for about 2,500 residential lots. That is roughly half the amount the former owner sank into the property for roads, sewers and other infrastructure alone. At the same time, land investor SunCal Cos. is working with firms like D.E. Shaw & Co. to close a dozen land deals in Arizona and California.

Excerpt:

A bankruptcy judge has denied SunCal Co.'s request to block Lehman Brothers Holdings Inc. (LEHMQ) from closing a deal to buy back $1.5 billion in loans from affiliate Fenway Capital LLCLimited Liability Corporation pending an appeal.

The ruling by Judge James Peck of the U.S. Bankruptcy Court in Manhattan is a blow to SunCal, which had hoped to prevent the repurchase of seven loans that are at the center of a long-running dispute between the developer and the failed investment bank over stalled California real-estate projects.

Excerpt:

A 55,000-acre tract of land on the western edge of Albuquerque scheduled for development by Westland DevCo LP was placed in receivership based on the creditor's claims on the unpaid loan balance, a judge ruled from the bench last week.

Page one story
Albuquerque Journal
May 20, 2010

Excerpt:

A federal judge in Delaware last week threw out a bankruptcy claim filed by Westland DevCo, a limited partnership formed between D.E. Shaw and SunCal Cos. to develop a 55,000-acre parcel west of Albuquerque into a master planned community.

...

Excerpt:

Opponents of a state-backed tax scheme to help develop a parcel of land on Albuquerque’s West Mesa say they aren’t surprised by news that the company behind the plan has filed for bankruptcy.

Here’s a copy of the bankruptcy filing.

“What we all said was going to happen and what we knew was going to happen finally happened,” said Rep. Ben Rodefer, a Democrat from Corrales. “They were not viable financially and not of the caliber we should want to be in a relationship with.”

Excerpt:

SunCal Corporation’s New Mexico subsidiary, Westland DevCo, has filed for Chapter 11 protection in a U.S. bankruptcy court in Delaware. SunCal bought the 57,000 acre Atrisco land grant on the western fringe of Albuquerque in 2006, for about $250 million, with plans to develop it into a new city. It’s partner in the acquisition was D.E. Shaw, a New York investment firm. Since then, SunCal has been plagued by bankruptcies as it got caught up in a real estate market gone bust.

Excerpt:

Westland DevCo, a limited partnership between D.E. Shaw and SunCal Companies to develop a 55,000-acre parcel of land into a master-planned community west of Albuquerque, filed for Chapter 11 bankruptcy protection Monday to restructure its debt.

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Excerpt:

Representatives from SunCal have told city officials that they intend to negotiate for the right to use a state affordable-housing law to implement the developer’s original plan for Alameda Point – a move that could allow the developer to build its non-Measure A(1973) The actual text of what is known as Measure A is article 26 of the Alameda City Charter. It reads as follows: "Sec. 26-1. There shall be no multiple dwelling units built in the City of Alameda. Sec. 26-2. Exception being the Alameda Housing Authority replacement of existing low cost housing units and the proposed Senior Citizens low cost housing complex, pursuant to Article XXV of the Charter of the City of Alameda. Sec. 26-3. The maximum density for any residential development within the City of Alameda shall be one housing unit per 2,000 square feet of land. This limitation shall not apply to the repair or replacement of existing residential units, whether single-family or multiple-unit, which are damaged or destroyed by fire or other disaster; provided that the total number of residential units on any lot may not be increased. This limitation also shall not apply to replacement units under Section 26-2." compliant plan without taking it back to voters.

Excerpt:

WILMINGTON, Del., April 5 (Reuters) - A company that planned an "enormous and unprecedented" residential and commercial development in the City of Albuquerque, New Mexico, filed for bankruptcy on Monday, according to court documents.

Westland DevCo Inc filed for bankruptcy with $361 million in assets and $198 million in debts, as of Dec. 31.

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