One of the arguments the opponents to Measure B make is that bringing in a developer to revitalize the former Navy base means the City will “lose” millions of dollars in lease revenue each year from current tenants at the Point. A variation of this theme is that we don’t need development at the former Navy base because we’ve got all this lease revenue coming in.
The reality is that lease revenue is not keeping up with the costs the City is paying each year to maintain the Point and it’s costing us million of dollars every year.
SunCal propaganda? Nope, this recognition comes straight from Councilmember Doug DeHaan himself, one of the chief authors of the above-mentioned argument about “losing” lease revenue. From Councilmember DeHaan’s 2008 campaign web site:
CONVERSION OF ALAMEDA POINT:
For the past eleven years, The City of Alameda has actively been engaged in the process of the conversion of Alameda Point for public use. In the last eight years the city has been involved with two different master developers. During this period the city has bonded over $15 million in support of public services and the conversion planning process. The present cooperative agreement with the Navy and our inability to generate enough lease revenue is costing the City General Fund $1 million to $2 million annually.
I believe the city must maintain the present city/master developer Exclusive Negotiation Agreement (ENA) timeline. This has been very difficult during the present turbulent national fiscal crisis. Our challenge has always been to convert Alameda Point with zero fiscal impact (fiscal neutrality) to The City of Alameda, while fulfilling the community’s goals and expectations. The city must make sure that the community is fully engaged in the process and understands all aspects of this complex redevelopment project
Lauren Do covers this topic today in her blog post Paint It Black.
