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Monday, April 17, 2017

Alameda Point's 800-unit residential, mixed-use project faces financial setback

A 2015 rendering of Alameda Point's "Site A"
featuring Seaplane Lagoon.
ALAMEDA
The develpers of the Alameda Point parcel known as “Site A” failed to complete a financing plan for the project before a deadline last week, due to growing construction costs.

Alameda officials and the project’s developer, Alameda Point Partners, downplayed the setback, which also precluded the property being conveyed from the city to the developer.

Alameda City Manager Jill Keimach said the city is “disappointed to experience a delay in this highly anticipated project” but pledged to work closely with Alameda Point Partners.

“The delay we are experiencing today is a result of changes in the market that include dramatically increasing construction costs,” said Bruce Dorfman, managing partner of Alameda Point Partners. “We are pleased to be in partnership with the City of Alameda and will continue to work with them to implement an incomparable development plan in spite of the challenging economic environment.”

“Site A” includes construction of more than 800 residential housing units, including 200 set aside for affordable housing; a ferry terminal at Seaplane Lagoon; 600,000 square feet of commercial and retail space; and 15 acres of public space.

The project is viewed as a prime catalyst for jump starting the overall redevelopment of the former Naval base, but problems with the developer’s finances began to show last December when the Alameda City Council voted to give Alameda Point Partners a 120-day extension to provide a development budget and financing plan. Wednesday’s extension deadline, though, was not met.

“It would be a huge disaster if it didn’t go there and we would have to start from scratch in an economy that’s not as robust as two years ago,” said Councilmember Jim Oddie. But both sides appear willing about continuing the relationship at “Site A.” “It’s not like they’re totally abandoning us or we have no faith in them,” added Oddie.

In order for the project to pencil-out, Alameda Point Partners proposed an amendment to the “Site A” development plan that would accelerate construction of housing units from the second phase of the project to the first. The developers believe the amendment will allow it to cover the costs of infrastructure.

2 comments:

  1. This is a pattern with the City of Alameda. Sign an agreement and then claim that the original agreement won't work and ask for more. Keep repeating until you get what you wanted originally. Bait and switch.

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  2. Mayor Trish is loving this.

    ReplyDelete