SunCal Secures Funds to Clean Up Oak Knoll Property
Money to be Used for Weed Abatement, Security and Maintenance
Oakland, Calif. (Oct. 8, 2009) – SunCal Companies today released the following statement regarding critical cleanup and maintenance issues at the Oak Knoll property in Oakland:
“We are pleased to announce that we have reached a stipulation with the project’s bankruptcy trustee and Lehman Brothers to effectively address some of the concerns about the site that are of an immediate nature. Contingent upon the court’s approval, the trustee has agreed to release funds for property-wide weed abatement, cleaning up wood piles and repairing of perimeter fences. In addition, there would be a team of armed security guards on duty 24 hours per day to help secure the property from trespassers.”
“The resumption of property maintenance and security is an important matter we have consistently advocated with Lehman Brothers, the financial partner for SunCal Oak Knoll, LLC, the owner of the Oak Knoll property. Lehman Brothers filed for bankruptcy in September 2008 and this has affected the funding for Oak Knoll and other projects that the firm provided financing for.”
“We are continuing our discussions with Lehman and the trustee about the outstanding issues at Oak Knoll and are working with them in an effort to resolve these matters. SunCal remains committed to the long-term potential and vision of the Oak Knoll master-planned community.”
Oakland City Councilmember Larry Reid thanked SunCal for continuing to bring these important health and safety issues to light throughout the ongoing legal proceedings involving Lehman Brothers and Oak Knoll.
“For more than a year, SunCal has been working with Lehman and the court to indentify these problems,” Reid said. “This stipulation ensures that the health and safety of our residents remains our number one priority now and into the future as the Oak Knoll property is brought back into productive use.”
A total of more than $500,000 for cleanup and maintenance at Oak Knoll, once approved by the bankruptcy court, will address the most urgent concerns throughout the property. The money is coming after SunCal’s ongoing, repeated efforts to obtain funding for Oak Knoll that predates the current Lehman court proceedings and extends back to Lehman’s bankruptcy in September 2008.
SunCal is continuing to work through the court to bring in a new source of funding to address the remaining issues at the 167-acre property and move the development forward. The plans for the Oak Knoll community include 960 homes with a diversity of housing types, 82,000 square feet of commercial retail, and 50 acres of parks and open space.
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