Excerpt:

In June 2015, Alameda Point Partners (APP) got the green light from the City Council to proceed with the development of a 68-acre site at Alameda Point. The property, known as Site A, extends from the old East Gate of the Naval Air Station at Main Street and today’s Ralph Appezzato Memorial Parkway to Seaplane Lagoon.

Both APP and the city originally envisioned development at Alameda Point unfolding in three phases over 15 years. The Disposition and Development Agreement (DDA) hammered out between the two parties defines Phase One as improvements on some 30 acres of the 68-acre Site A property.

The agreement contains a milestone schedule for Phase 1: Land conveyance by April 11, 2017; infrastructure completion by June 11, 2019; and vertical — or build-out — completion by Dec. 11, 2019. When APP did not convey the land by the April 11 deadline, the city wasted little time.

On April 11, City Manager Jill Keimach notified APP that by missing the deadline, it had failed to comply with the DDA. Keimach gave APP 30 days to cure its “breaches and failures.” In an April 12 letter addressed to Keimach and City Attorney Janet Kern, APP cited the lack of competitive subcontractor bids as one reason for not respecting the April 11 deadline. The lack of bids is one factor that increases construction costs, which, in turn, negatively impacts the value of land for investors.