California Real Estate Journal: Bill Advances the Redevelopment Of Shuttered Calif. Bases
Bill Advances the Redevelopment Of Shuttered Calif. Bases
Act authorizes military to sell decommissioned property 'at or below fair market value'
By GREG KANE
CREJ Staff Writer
The National Defense Authorization Act for 2010, signed by president Barack Obama in late October, authorizes officials with the U.S. Navy and other military branches to sell bases shuttered under a federal program in recent decades "at or below the estimated fair market value" to developers and local governments in their jurisdiction. Many former naval bases targeted for redevelopment across California - including San Francisco's Treasure Island and Alameda Point in nearby Alameda - remain tied up in negotiations over property values, officials said.
The new rules governing conveyance of such properties allows the military to consider a lower price than what would be considered fair market value, particularly when the community behind the redevelopment effort is facing a large infrastructure investment or is experiencing poor economic conditions, according to the bill. In exchange, the military would receive a portion of the revenues generated by the redevelopment effort from property sales and leases.