Excerpt:

Oak Knoll, the sweeping, picturesque Oakland hills property that once housed a storied Navy hospital, is once again in flux.

As part of the huge Lehman Bros. bankruptcy proceedings, a federal judge recently granted control of the 167-acre site to the liquidation estate handling the Lehman remnants.

The settlement means SunCal, the Orange County developer that bought the property in 2006 for $100 million, is no longer involved in the project - and the project itself may be dead.