Excerpt:

Lehman Holdings LLC will pay $3.7 million as part of a deal with the City of Oakland to remove a serious fire threat and clean up trash dump conditions at the former Oak Knoll Naval.

Development of the site stalled last year when SunCal Oak Knoll LLC declared bankruptcy following the collapse of Lehman Brothers Holdings Inc. More than 90 unattended buildings, asbestos, overgrown vegetation and other problems alarmed neighbors, and the Oakland Fire Chief declared the 167-acre property a major fire hazard.

“The tinderbox buildings, hazardous materials and neglected grounds at Oak Knoll have become a very real threat to health and safety in a city that experienced one of the worst fire disasters in the history of the United States,” City Attorney John Russo said. “A lot of people here were angry and saw this as Wall Street causing another mess for Oakland to clean up.