At its March 7 meeting, Alameda City Council provided feedback to staff regarding the numerous strategies for the future of the Reuse Area at Alameda Point. Council told staff that it favored the mixed/phased sale strategy for the buildings that occupy the Reuse Area.

The mixed/phased sale strategy would sell much of the property to private ownership gradually over time. The city would then use the funds to build and construct new infrastructure while retaining high-value buildings to lease until the area’s operating costs are reduced. Other buildings would remain available for lease until the property is ready for sell.

According to Alameda Public Works Director Erin Smith, existing infrastructure is more than 70 years old. Smith told the council at the meeting that new infrastructure will cost an estimated $700 million or $2 million per acre. Much of the cost would be for new roadways, utilities (water and gas facilities) and flood protection. Smith also said the city cannot facilitate long-term private use or build new housing, parks, or businesses without new infrastructure.

“[With] new cohesive and backbone infrastructure system, not only does that mitigate our risk related to the old infrastructure, but it really allows us to move forward new infrastructure, new investment and businesses,” said Alameda City Manager Jennifer Ott.

Besides building new backbone infrastructure at Alameda Point, city staff said the strategy had two other goals. First, it will allow them to generate sufficient lease revenue to cover operating expenses. Second, it will deliver community benefits to the city such as the development of a new regional sports complex, job creation, affordable housing and more.

Council heard three other strategies for the Reuse Area. First, sell the property in the near-term. Second, a long-term hold, which will continue lease procedures that can fund the new infrastructure. Lastly, a portfolio sale to one master developer. An independent consult said the mixed/phased sale strategy was better than these options.

David Desmond from KMA Analysis said with a phased sale the city can wait until each building is most ripe for sale and then put it on the market.

The council was in favor of the mix/phased sell strategy. However, Councilmember Trish Herrera Spencer emphasized that it will be important to sell buildings at market rate.

“I do think it’s important to sell at market rate as in putting buildings up and finding out who wants to pay the most for our buildings,” said Spencer. “I have been concerned in the past that we like pick and choose who we want to do business with and there could be a lot of reasons why those tenants get chosen and those businesses get chosen and they’re not necessarily paying as much as someone else would be offering.”

The Reuse Area overlays with the Nationally Registered Historic District, which inhibits significant building demolition and large-scale new development.

The Reuse Area is surrounded by Pan Am Way, and Main Street, and part of the former Naval Air Station (NAS). No vote was taken for the meeting item.