The Island: Operating at the Point


Tonight, the City Council is slated to discuss the detailed operating agreement between Alameda Point developer SunCal and D.E. Shaw, the New York hedge fund that the developer has taken on as a financial partner in the midst of an economic apocalypse that has crushed the housing market and shuttered many other, more traditional funding sources.

Once again, the council is holding a closed-door session (in case you missed it, it's listed as a "conference with real property negotiators" on a special meeting agenda for the council/Alameda Reuse and Redevelopment Authority/Community Improvement Commission, and the claim is that they are negotiating "price and terms" for Alameda Point). Not to editorialize, but the staff report on this item explicitly notes that the developer is "obligated to bear all costs associated with a dispute that the document is a public record."

Anyhoo. Sounds like D.E. Shaw - whose folks will head a new entity called Cal Land that will take over Point development, per the staff report and this org chart released with the new development concept a few weeks ago - can fire SunCal as manager of the project for cause, which as far as we can tell would be gross negligence, willful misconduct, criminal activity - and a whole host of other "member issues" listed in the operating agreement we're not allowed to see.