Alameda Community News Project: On Point: Penciling out, May 1, 2012


The city’s commitment to proceed with a less-intensive development plan than the one proposed by former Alameda Point developer SunCal could face a major hurdle: The amount of development now being contemplated for the former Naval Air Station may not pencil out financially.

A financial feasibility analysis conducted for the city by Keyser Marston Associates shows that the amount of money the city could raise in land sales and public funding doesn’t even come close to the amount they would need to pay for roads, water pipes and other infrastructure that needs to be built to support development at the defunct base.

“Given the magnitude of infrastructure costs, it is difficult to estimate a development program that is feasible under current market conditions,” Alameda Point Chief Operating Officer Jennifer Ott wrote in a report to be presented to the City Council on May 8.