Press release by Oakland City Attorney: Judge Approves Lehman Cash to Clean Up Oak Knoll, January 11, 2010
After months of community concern and legal wrangling, a deal to secure $3.7 million from failed Wall Street giant Lehman to abate health and safety hazards at the former Oak Knoll Naval base has been approved by a U.S. Bankruptcy Court judge in Santa Ana.
The former Oak Knoll base was set to be developed by SunCal Oak Knoll LLC with financial backing from Lehman. But after the collapse of Lehman and the subsequent bankruptcy of the SunCal Oak Knoll partnership, contractors walked away from the property leaving more than 90 half-demolished buildings, piles of asbestos, overgrown vegetation and other problems. The Oakland Fire Chief declared the property a major fire hazard in a city that, 18 years ago, experienced one of the worst fire disasters in modern U.S. history.