City of Alameda Press Release: Alameda Point “Site A” Development Delayed, April 13, 2017
Alameda, California – April 13, 2017 Alameda Point Partners (“APP”), the developer for Site A at Alameda Point, and the City of Alameda today announced they will work collaboratively over the coming months to help move the Site A development forward. Site A is approved for 800 new residential units, including 200 affordable, a ferry terminal with service to San Francisco, more than 15 acres of public parks, and up to 600,000 square feet of commercial and retail space, and new and/or upgraded streets and infrastructure to support Site A as well as existing and future development at Alameda Point.
Rapidly rising construction costs have prohibited APP from finalizing its development budget and completing its financing plan in order to accept conveyance of Site A by the milestone date of April 11, 2017. Today, APP proposed to complete an amended plan within a 120-day timeframe that will allow them to proceed with the development, address the economic challenges, and deliver a quality project consistent with the design, intent and scope of the planned development.
The default by APP, not anticipated by either party, was a consequence of economic uncertainty stemming from the extraordinary escalation of construction costs since the original execution of the Disposition and Development Agreement (DDA) in August 2015, without a parallel increase in projected revenue. The resulting negative impact on land value created significant risk that the project’s proceeds will not cover the cost of the infrastructure.