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A last note of agreement

Submitted by on 1, August 20, 2008 – 7:45 amNo Comment

Just wanted to drop a quick note to let you know the City Council did okay SunCal’s request to bring on a financial partner to help it complete redevelopment work at Alameda Point as spelled out in its negotiating agreement with the developer. It also decided it will terminate its agreement if SunCal is fired by its financial partner, D.E. Shaw, without good cause.

The decision followed a closed-door session in which the council received a presentation on the terms of the deal between SunCal and D.E. Shaw. A full operating agreement, which will spell out in more specific terms who’s paying for what, who’s getting paid for what and who’s in charge, will also be heard in a closed session at a future date.

Council members praised SunCal for its openness about its development plans for Alameda Point and its tenacity in finding a financial partner they hope will allow it to continue working on the project during what are some almost apocalyptically tough times for the housing market.

Councilman Frank Matarrese also won a more fixed time frame for the project that is to be set. The city’s base reuse manager, Debbie Potter, said legislation to erase the $108 million price tag on the 770-acre site and a likely election to amend Measure A could significantly change the timeframe for the development. SunCal’s current plans include two mixed-use plans with 4,000 and 6,000 homes, respectively.

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