Alameda Sun: Point Developer Asks for Some More Time, January 12, 2017
At its Tuesday, Jan. 17 meeting the City Council will likely take the first step in passing an ordinance that would allow Alameda Point Partners, LLC, (APP) additional time to complete itsdue diligence and line up some supplementary funding. The move would require a change in the Disposition and Development Agreement (DDA) with APP.
To protect its interests, the city can only amend the DDA by way of an ordinance. If passed the ordinance would extend the Phase 1 closing date from Dec. 12, 2016 to April 11. APP requested the amendment prior to last month’s deadline. The additional 120 days would allow APP time to complete property investigations and secure additional financial commitments.
Members of the new City Council could move forward based on the recommendation of City staff. In her report to the Council, City Manager Jill Keimach pointed out the importance of resolving the items “before transferring the property out of City ownership.”
In her recommendation, Keimach reminds the City Council that “APP has invested significant financial and staff resources into the predevelopment of Phase 1 of Site A, demonstrating a solid commitment to implementing the Site A Project successfully.” APP has already spent $13.6 million in equity funds on predevelopment efforts, including money on planning and permitting of the Seaplane Lagoon Ferry Terminal.
The staff report points out the complex infrastructure and environmental issues that APP faces at Alameda Point. These include the need to upgrade deteriorating infrastructure that dates to the Navy’s creation of its air station in 1940. The developer also faces complex environment issues related, in most cases, to the Navy’s presence, but in some cases to existing environmental conditions.