Oakland Tribune: Oak Knoll Naval Hospital to be demolished, January 11, 2011


OAKLAND -- The last remaining decrepit structures at the former Oak Knoll Naval Hospital, including an 11-story concrete building, will be demolished this year by the property's owners after a federal bankruptcy judge agreed to release $1.7 million to complete the work.

Judge Erithe A. Smith approved the funding Tuesday allowing property owner SunCal Oak Knoll LLC to demolish the former hospital building, a warehouse and a former bachelor's quarters, which still stand as a symbol of the country's financial crisis and Oakland's failed attempts to redevelop closed military bases.

The money will be paid by bankrupt financial firm Lehman Brothers, which joined with SunCal half a decade ago to win approval for a master-planned community at the site including construction of 960 homes, 82,000 square feet of commercial development, and 50 acres of parks and open space.