After almost 14 years of haggling over the price of a 918-acre parcel at the former Naval Air Station Alameda, the Navy last week agreed to hand over Alameda Point to the city of Alameda via an economic development conveyance (EDC) for free.
The Navy’s offer to convey the property at no cost will provide a tremendous boost to the city’s strategy to assume the role of master developer for the property. Officials believe the site’s development could generate from 6,000 to 9,000 permanent jobs.
Alameda Point’s potential to create jobs was the main factor behind the Navy’s change of heart, Jennifer Ott, the city’s chief operating officer for the redevelopment project, told Alameda Patch.
Under a previous deal, the Navy had agreed to convey the property to the city for $108 million.
The city’s recent request for a no-cost EDC for a 50-acre parcel under consideration by Lawrence Berkeley National Laboratory triggered last week’s surprise offer from the Navy, Ott said.
The agreement includes one provision which could generate revenue for the Navy. If the city allows the construction of more than about 1,400 residential units at Alameda Point, it would owe the Navy a penalty of $50,000 per excess home. The limit was based on the number of housing units included in the former air station’s reuse plan. That number is 2,011 units, but 586 housing units already have been built on the other portions of the base.
The entire parcel could be turned over to the city by the end of 2012, with some pieces transferred earlier, according to the story.
On Wednesday the city, acting as the reuse project’s LRA, is expected to formally approve the term sheet for the transfer.