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04-09-2006  Huge Oakland housing project criticized 09-26-2005 Waterfront plan for Oakland not floating with some locals
04-19-2004  Legislation pushes for waterfront projects - Perata's bills would clear path for planned 
10-07-2003 Hidden costs in port's land sale - Behind-the-scenes deal includes appraiser slashing value of property
09-30-2003 Waterfront land issue has owners suing city - They allege City Council
09-03-2003 Sale of land on estuary approved - Housing, retail development now needs endorsement from state
09-02-2003 Port ready to sell blight for condos - Housing, retail developer would pay $18 million for industrial land near Jack London Square
07-15-2003 Artists colony fears development - Oakland's waterfront redevelopment project could displace longtime Fifth Avenue community 

 

April 9, 2006 Oakland
The Oakland Tribune (CA)
Huge Oakland housing project criticized 

As the giant Oak to Ninth housing development inches closer to final approval, debate over what its developer should give the city is becoming more pronounced and heated.

In the last two weeks, various groups have come together to question both the project's impact on the city and terms of the deal that earned Signature Properties of Pleasanton control over 64 acres of waterfront land.

Those questions have come in the form of an appeal of the city Planning Commission's recommended project approval and a letter from an attorney questioning the deal.

"It is a huge project and they are trucking down the road pretty quickly here," said Naomi Schiff, executive director of the Oakland Heritage Alliance, one of six groups that have filed an appeal of the development. "This is an opportunity to get a better deal."

Concerns raised by the group remain the same as they have been since the project was proposed several years ago.

The groups are worried about not having enough park land along the water. They're concerned with limited access to the development.  Others oppose destruction of an historic port terminal. And they want to ensure the public benefits the developer has promised are completed in a timely manner.

The project is proposed to be built in phases with the all the park land and the Bay Trail not completely finished until at least 2026.

"We feel like this is the developer telling us what he wants to do.  It should be us telling the developer what we want to do," said Helen Hutchison , executive director of the League of Women Voters of Oakland. "Decisions have been made without complete information."

The fact that the development would be built on public land has caused emotions to run hot and given residents a sense of entitlement not found in a more private development proposal.

It also will require a change to the city's Estuary Plan, a much touted document created a decade ago to guide how the city's waterfront land should be developed.

As a result, many say, the city should get more for the development than it would if the project were being built on private land.

"If we are going to give up public lands, we should get, in return, improved access to those lands," said Robert Raburn, executive director of the East Bay Bicycle Coalition. "It is unfair to residents to build new housing and parks that are not accessible to the entire city."

But access would not matter if there were no park to begin with, argues Signature Properties' President Michael Ghielmetti.

"If this project wasn't there, how would their parks be built?" he said. "This developer has offered to install the parks, and maintain them forever."

The amount of open space in the project has increased since it was first proposed, he said. And access to the land will be improved once it is completed, he argued.

"We are building on blighted and unopened land," Ghielmetti said.

Signature Properties was selected by the Port of Oakland to purchase the 64-acre tract in 2001.

Under the deal, Signature Properties paid $18 million for the land that was appraised at $34 million. But Signature Properties took full responsibility for cleaning up the site. At the time, the cleanup cost was estimated to be $16 million.

Since then, Signature Properties has increased the number of housing units it plans to build at the site to 3,100 from 1,400. That has caused critics to question if the value of the land has increased.

And now critics want the port to seek additional funds when it might be forced later this year to extend its exclusive negotiation agreement with Signature Properties.

"The port is working on an appraisal that is three years old," said Arthur Levy, an attorney who is investigating the agreement.  "Signature Properties stands to gain (value) just on the entitlements alone ... they basically are way underpaying for the property."

Ghielmetti, however, said the deal is still fair to all.

Since Signature Properties began working on the site, clean-up costs have risen by at least $8 million. He said his company is providing all infrastructure improvements, such as sewer, roads and parks.

All those improvements will cost more than originally thought since the cost of construction has risen since 2001, Ghielmetti said.

"I need to provide infrastructure, I have to bring in water, I have to bring in sewer, I have to bring in storm water basins," he said.  "It is still a fair deal for the port. It is still a fair deal for the city."

Ghielmetti said there is not much more he can give back to the city without losing the investment funds needed to make the project a success.

"I can't attract financing to this project without having something that has a minimum level of profitability," he said. "Look, I am buying an old house, fixing it up and delivering it at cost."

(c) 2006 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Paul T. Rosynsky, STAFF WRITER Section: Inside Bay Area (c) 2006 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank

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September 26, 2005 OAKLAND
The Oakland Tribune (CA) 
Waterfront plan for Oakland not floating with some locals

It's the largest chunk of waterfront land in Oakland still available for development.

It encompasses more than 64 acres and is home to a historic shipping terminal, two marinas and more than a mile of shoreline along the Oakland Estuary.

For years it's been a mostly vacant industrial track, used in the past to support shipping operations and freight trains for the Port of Oakland .

Now it's slated to be one of the largest housing developments in the city.

Because of that, the Oak to Ninth Avenue development has galvanized a broad spectrum of residents fighting for everything from open space to affordable housing.

This week, debate over how Pleasanton-based Signature Properties should develop the land will move to the city's Planning Commission, which is holding a workshop to discuss the plan and a recently released environmental impact report.

If Signature Properties gets everything it wants, the Oak to Ninth project will have more than 3,100 housing units in 13 buildings ranging in height from six to 24 stories.

It will have 200,000 square feet of commercial space, 20 acres of park land and two refurbished marinas.

It will basically create a new neighborhood in an area long forgotten.

"It will reintroduce Oakland to a large section of the waterfront," said Michael Ghielmetti, president for Signature Properties. "A lot of people have issues that they are very passionate, about. and that is great. ... We are trying to balance a lot of different interests in this project."

But to get that balance, some say, the developer's plan will destroy a city landmark, close off the waterfront to the rest of the city and create an exclusive neighborhood on what was once public land.

"We have this one opportunity, and if we blow it, we have blown it for good," said John Sutter, a former Oakland City Council member and Alameda County Superior Court judge. "We've fought for 60 years to get this property, and now we are just going to privatize it and cut out the real potential it has for the public."

The problem, Sutter and others said, is the project's density and configuration.

They worry that the high-rise buildings will block views of the water while shading the parks. And, they said, the road configuration inside the project would make it difficult for residents to realize they could gain access to the estuary from the Embarcadero.

To make their point, some residents turn to the city's Estuary Policy Plan, a six-year-old planning document that outlines how the city should develop its waterfront. The plan calls for the area to be mostly park land, with low-density buildings housing retail uses.

"It is the footprint that is a major concern," said Sandra Threlfall, executive director of Waterfront Action, an Oakland-based group that promotes public uses of the waterfront. "Generally speaking, if people can't see the edge, they don't know it is there."

Ghielmetti disagrees and says that while the project does not conform to the Estuary Plan, it is designed in a way to bring vibrancy and vitality to the area.

"The Estuary Plan as written wouldn't have drawn people in significant numbers to the water," he said. "In order to pay for the parks and make those parks viable and vibrant, we had to get more height."

And to get more park land, Ghielmetti argued, he will be forced to demolish about 90 percent of the Ninth Avenue Terminal, built in the 1920s and expanded in the 1950s.

Ghielmetti said the building's facade and about 15,000 square feet of its warehouse portion will remain and be used as a possible market location.

"We are saving the architectural significant part and we are turning it into a cultural resource," he said. "If you leave the entire building there, you obscure the views and the water."

Naomi Schiff, president of the Oakland Heritage Alliance, doesn't agree.

The alliance last year tried to make the building, the last of its kind in Oakland , a city historic landmark. But the movement was halted after the city's Planning Commission refused to hear the case.

Some groups are also concerned with the lack of affordable housing in the current plan and say at least 25 percent of the project should be set aside for families earning less than $25,000 a year.

Ghielmetti said he is currently working to include more affordable housing, but details are still not available.

The start of the approval process will begin Wednesday at 6:30 p.m.

If the approval process goes as planned, the project would be completed by 2014, with about 1,139 residential units completed between 2007 to 2010.

"If you think of it as a loaf of bread, it's like saving the end piece and throwing out the loaf," she said. "This is not historic preservation, this is hanging on to an old door knob."

Instead, Schiff said, the developers should save the building and try to refurbish it for use as a large market or retail center.

But doing so, Ghielmetti argues, would take away a key component of his plan to create a park along the water similar to Marina Green in San Francisco .  

(c) 2005 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Paul T. Rosynsky, STAFF WRITER Section: Review (c) 2005 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank

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April 19, 2004 
The Oakland Tribune (CA) 
Legislation pushes for waterfront projects - Perata's bills would clear path for planned 

State Sen. Don Perata, D-Oakland, is sponsoring twin pieces of legislation local political and port officials say are crucial for the future of two controversial developments along Oakland 's waterfront.

One bill would pave the way for a private developer's plan to buy 60 acres of Port of Oakland property and build 2,000 condominiums in the Oak-to-Ninth District along the Estuary.

The second bill would advance the city's proposal for a mixed-used development on a section of the former Oakland Army Base near the foot of the Bay Bridge . If it passes, the second bill, SB 1435, also would result in the port tearing up a recently constructed $37 million rail yard, funded with public money.

The two developments require special legislation because both would violate the state's Tidelands Trust law, which prohibits specific types of construction -- such as building condominiums -- on waterfront property.

The bills would remove the Tidelands Trust designations from both the city's portion of the former Army Base and the Oak-to-Ninth District and place them on other pieces of land so the two developments can proceed legally.

The bills are scheduled for Senate committee hearings Tuesday in Sacramento . Perata's office did not return a phone call seeking comment.

At the former Army Base, which closed in 1999 and was transferred to the Oakland Base Reuse Authority last year, the city wants the Tidelands Trust designation removed from about 98 acres just south of the bridge.

SB 1435 then requests the Tidelands Trust designation be placed on about 131 acres of inland base property that is to be awarded to the port. The port plans to tear up its $37 million rail yard, completed in spring 2002, and rebuild it on the former base at an additional cost estimated to top $65 million.

Port officials, who have come under fire for their plans since they were revealed in an Oakland Tribune investigation two years ago, said previously they needed to relocate the rail yard, known as the Joint Intermodal Terminal, to improve overall efficiency at the port.

Moving the rail yard inland would make room for expansion of several maritime terminals, allowing the port -- which is the fourth-largest container harbor in the nation -- to maintain market share, they said.

But port Executive Director Tay Yoshitani said Friday the port has hired an outside consultant to examine alternatives. If the port doesn't move the rail yard, it could expand terminals adjacent to the base.

"We asked (the consultants) to review the total rail operation and our long-term strategy," said Yoshitani, who is retiring this summer.  "We want to optimize the utilization of the monies we already invested."

At one time, Mayor Jerry Brown and former City Manager Robert Bobb had grandiose plans for the city's half of the base, including construction of an American-Indian casino, a four-star hotel and a major department store.

Those plans have been scrapped, leaving the city with an older proposal for a mixed-use development with a light industrial park.

Councilmember Ignacio De La Fuente (San Antonio-Fruitvale) said he believes what goes on the base ultimately will hinge on market forces.

"It's going to take us a couple of years to get through this (the Tidelands Trust changes), and it will depend on what the economy is doing," he said.

De La Fuente also said the city, which has considerable power over the port, may ask the port to buy the city's half of the base if Oakland is unable to find a suitable developer.

"I believe it's our responsibility to maximize revenues for the city," he said, noting that extra funds could help the city avoid future budget cuts.

But Councilmember Nancy Nadel (Downtown-West Oakland), whose district includes the base, said she would oppose such a move. The city should use the base to create private-sector jobs, not add to the city's coffers, she said.

"Even if the port offers us a large sum of money, that doesn't help people who need jobs," she said.

In addition, one top official from the state Lands Commission, which oversees the Tidelands Trust, said the commission may have concerns about the city selling the base to the port.

Lands Commission staff essentially has signed off on both of Perata's bills. But it may frown on the city requesting that a Tidelands Trust designation be removed from its property and placed on port property, only to have the port buy the city's property. That would make the Tidelands Trust swap unnecessary, said Blake Stevenson, senior counsel for the Lands Commission.

The Lands Commission already has raised issues with a previous city/port agreement that required the port to pay the city $30 million for another section of the base -- the Knight Rail Yard -- that many believe the port should have received for free, Stevenson said.

Critics inside the port have viewed that deal as a device for the city to get at port funds, which have numerous restrictions on them.  City officials have fumed for years as the port raked in hundreds of millions of dollars from its profitable shipping and aviation divisions while the city Perata's other bill, SB 1622, would remove the trust designation on the Oak-to-Ninth District and place it on a yet-to-be named port property not already encumbered by the trust.

If such a property cannot be found, the port would be allowed to deposit funds in the Tidelands Trust in an amount equal to the value of the land removed from the Trust, Stevenson said.

The port plans to sell the 60-acre Oak-to-Ninth land to Signature Properties of Pleasanton for $18 million. Signature Properties also has agreed to spend $16 million to clean the land of toxins.

But the port has come under fire for the Oak-to-Ninth deal because the appraiser slashed $30 million off the price of the property to finance Signature's costs to ready the land for development.

Such price breaks often are called public subsidies. But the port maintains they are legitimate cuts, required by the marketplace.  However, the port did not put the sale of the land out to bid to determine its market value. 

(c) 2004 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Robert Gammon and Paul T. Rosynsky, STAFF WRITERS Section: More Local News (c) 2004 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

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October 7, 2003 OAKLAND  
The Oakland Tribune (CA) 
Hidden costs in port's land sale - Behind-the-scenes deal includes appraiser slashing value of property 

The Port of Oakland 's plan to sell 62 acres of waterfront property to private developers includes millions of dollars in hidden costs, port documents and interviews show.

The documents reveal a port-commissioned appraiser earlier this year slashed the value of the land just southeast of Jack London Square , known as Oak-to-Ninth, by about $30 million to offset "extraordinary costs" to be incurred by the developers, such as building a waterfront park.

The deal to sell the estuary land to Signature Properties of Pleasanton and Reynolds & Brown of Concord for $18 million also could result in the port having to shell out at least $3 million to appease state officials. The deal also would require special legislation.

In addition, the port plans to hand over to the developers at least $1.2 million a year in rent the public agency currently collects from businesses on the property, the documents show.

The developers, meanwhile, plan to lease part of the property from the port for $1 a year for the next 66 years. The developers also plan to ask the city for a $20 million public subsidy to build 2,000 condominiums on Oak-to-Ninth. Port officials Monday continued to praise the deal, saying it will turn industrial blight into a vibrant waterfront community with plenty of public access to the Oakland Estuary.

"Whether (the deal) is for $18 million or not is not the issue," said Port Executive Director Tay Yoshitani. "The real issue is that the port does not have the kind of funds that we would need to develop this property ... which is an eyesore."

But opponents say the hidden costs are yet another sign the port favors no-bid, sweetheart deals for politically-connected developers.

"There are so many layers to this that make a bad deal," said Charles Steidtmann, an attorney for a private property owner in the middle of Oak-to-Ninth who has filed two lawsuits against the city. "It makes it hard to put your finger on one thing and say, 'That's what makes this deal bad.'"

An option agreement that would allow the developers to buy the property during the next two years is scheduled for final approval by the Port Commission this afternoon. Some port officials have estimated the total private investment generated by the development deal could reach $400 million to $500 million.

A port-commissioned appraisal of Oak-to-Ninth completed in March originally pegged the fair market value of the land at $63.6 million.  But the San Francisco-based appraiser, Carneghi-Bautovich & Partners, then lowered the price tag to $34 million, citing "extraordinary costs" Signature Properties said it would have to spend to ready the property for development.

Those expenses include:

$11.9 million for so-called "offsite costs" related to infrastructure, such as widening the Embarcadero roadway and the Lake Merritt Channel Bridge and installing new utilities and sewer lines.

$7.8 million to demolish buildings on property the developer does not plan to use.

$3.1 million to truck in 256,800 cubic yards of soil to shore up soft Bay muds.

$2.8 million to build a 12.8-acre park the port said will be required by the city and the state agency with jurisdiction over waterfront land -- the San Francisco Bay Conservation and Development Commission.

The $34 million price tag was further reduced when Signature Properties/Reynolds & Brown said it would pay the port $18 million, and promised to spend at least $16 million to clean the property of toxins.

Port Commission President John Protopappas said when he first heard the sales price, he thought $18 million was too low. But Protopappas, a local developer appointed to the commission by his longtime ally, Mayor Jerry Brown, said that after he "put his developer's hat on" he realized the developers' costs were going to be "very, very expensive."

And he argued the development was "going to increase waterfront access to the public."

"Right now, there's no real way for people to have access to the water," he said.

However, one local developer who has done business with the city but is not connected to the deal questioned some of the "extraordinary costs." The "offsite costs" and the cost to build a public park have been considered public subsidies in other development deals with the city, said the developer, who requested anonymity.

The port also has come under criticism for a massive waterfront development proposed for nearby Jack London Square . In that deal, finalized in early 2002, the port agreed to sell several buildings in the heart of the square for $17 million to the development team of Hal Ellis and James Falaschi.

In return, the port gave up about $5.5 million a year in rent generated by the buildings, port documents show. Plus the port agreed to spend $10 million to build a multi-story garage to service the new development.

Before it becomes final, the Oak-to-Ninth deal must clear several regulatory hurdles that could cost the port at least $3 million. Port Deputy Attorney Vivian O'Neal said about 10 acres of Oak-to-Ninth are strictly controlled by Tidelands Trust law, which prohibits certain uses on waterfront property, such as building condominiums.

As a result, the port may have to purchase another piece of property of equal or greater worth and "trade" it into the Tidelands Trust in order to have the Tidelands Trust removed from Oak-to-Ninth, O'Neal and Yoshitani confirmed.

If so, it could cost the port about $3 million or more and would require special legislation signed by the governor, O'Neal said. The legislation likely would be carried by state Sen. Don Perata.

Yoshitani said the port may attempt to have a section of the former Oakland Army Base not already in the trust traded into the trust. But Dave Plummer, regional manager for the State Lands Commission, which oversees the trust, said such a move would further complicate the Tidelands Trust issues on the Army Base. The city and the port currently are attempting to swap trust designations on sections of the former base.

"We have told them (port officials) that they should look first at (swapping) land along the Estuary before they look at the Oakland Army Base," Plummer said. 

(c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Robert Gammon, STAFF WRITER Section: Local & Regional News (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

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September 30, 2003 OAKLAND  
The Oakland Tribune (CA) 
Waterfront land issue has owners suing city - They allege City Council 

Owners of a four-acre lot along Oakland 's waterfront followed through on a promise to sue the city over a City Council decision that added their property to a redevelopment plan.

J.W. and Barbara Silveira claim in a lawsuit filed last week that the city illegally added their property to its Central City East Redevelopment Plan so officials could later use eminent domain to take it in the name of progress.

Their fear stems from two city-backed proposals that have gained approval over the last year.

The first is a Port of Oakland decision to sell more than 60 acres of waterfront land to Signature Properties. The Pleasanton-based developer is planning a more than $400 million residential and retail development from Oak to Ninth streets. Signature won port approval earlier this month to buy the land for $18 million.

The Silveiras' property, known as the Fifth Avenue Artists' Colony, sits in the middle of those 60 acres and the owners fear the developer wants their land for the project.

The second proposal is a city plan that designated a large swathe of land along the north side of Nimitz Freeway as a redevelopment area.  By doing so, the city made it easier to claim eminent domain on any property within that plan so it could redevelop it.

"The main thing is, this property was broughtin, not because it was in need of redevelopment, it was brought in to give to (the developer)," said Charles Steidtmann, an attorney representing the Silveiras. "We want an amendment to the plan so the city cannot claim eminent domain and take the property."

The Silveiras and Fifth Avenue residents asked for such an amendment last July when the City Council approved the redevelopment plan.

But city officials denied the claims, saying the property needed to be included to give the city negotiating room as it tries to redevelop the waterfront.

City Councilman Danny Wan (Grand Lake-Chinatown), who represents the area, said the property was included because it is one of a few sections from which flatland residents have direct access to the water.

Under a previously approved Estuary Plan, the city is required to build public access along the water but preserve the artists' colony.  Wan said Monday that by having the property in the redevelopment plan, both goals can be accomplished.

"It's a tool that we can use, it gives us some flexibility," Wan said. "We're not saying we will use eminent domain, but if the Silveiras refuse to be part of the planning ... that is a possibility."

However, Wan said, the Estuary Plan prevents the city from destroying the artists' colony. Instead, he said, the city might "upgrade" their living quarters or "give them another space."

Steidtmann said the lawsuit is asking an Alameda County Superior Court judge to postpone enactment of the plan and declare it illegal.  Among the problems cited by Steidtmann was the city's failure to properly notify the Fifth Avenue Colony and the Silveiras about the plan, and the blueprint's failure to comply with state laws regulating how redevelopment plans should be created. 

(c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Paul T. Rosynsky, STAFF WRITER Section: More Local News (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

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September 3, 2003 OAKLAND
The Oakland Tribune (CA) 
Sale of land on estuary approved - Housing, retail development now needs endorsement from state 

The Oakland Port Commission on Tuesday unanimously approved a plan to sell 60 acres of public land near Jack London Square to a high-powered East Bay development team.

The developers, Signature Properties of Pleasanton and Reynolds & Brown of Concord , want to build housing and retail outlets bounded by open space on the waterfront property known as Oak-to-Ninth.

In addition, port officials revealed Tuesday the proposed sale could include all or some of nearby Estuary Park , which the port previously had said was not on the market.

If state officials in charge of ensuring public access to waterfront land approve key aspects of the sale, the developers have agreed to pay the port $18 million for Oak-to-Ninth, under the deal approved by port commissioners Tuesday in a 6-0 vote. One commissioner was absent.

The developers also promised to spend at least $16 million on cleaning up the polluted industrial property between the Oakland Estuary and Interstate 880.

"We're committed to promoting the waterfront -- to promoting people to go down to the water," said Signature Properties President Michael Ghielmetti after the port commission's vote.

However, some local activists are raising concerns about the sale of Oak-to-Ninth, while others oppose it outright, calling it a sweetheart deal with politically-connected developers.

Both Signature Properties and Reynolds are top campaign contributors to East Bay politicians. In addition, Ghielmetti hired Lily Hu -- the top lobbyist in Oakland and former aide to state Sen. Don Perata, D-Oakland.

A coalition of nine community groups delivered a letter to port commissioners Tuesday, saying they cannot support the planned project unless it includes affordable housing.

The coalition also wants promises that community and neighborhood groups will be involved in the project design and that the development will create jobs for local construction workers, while enhancing "the waterfront as an asset for all Oaklanders."

"Our support for this project will be contingent upon the extent to which the project conforms to this vision," said Junious Williams, chief executive officer of the Urban Strategies Council, reading from the letter.

In addition, residents, artisans and owners of the Fifth Avenue artist's colony are worried the city will obtain the colony through eminent domain and sell it to the developers. Fifth Avenue, which is privately owned and not for sale, is surrounded by Oak-to-Ninth.

J.W. and Barbara Silveira, owners of Fifth Avenue , have already filed one lawsuit and plan to file another against the city to stop a City Council decision in late July that would allow eminent domain proceedings against Fifth Avenue , said one of their attorneys, Charlie Steidtmann.

Steidtmann also questioned the price to be paid for Oak-to-Ninth, which the port said was independently appraised at $34 million if it were to be cleaned up. Now that the property is included in the city's redevelopment plans, it's likely worth more, he said.

"The value may have increased significantly," he told port commissioners. "I suggest you update your appraisal."

But several representatives from East Bay labor groups spoke in favor of the deal and heaped praise on Signature Properties. Barry Luboviski of the Building and Trades Council of Alameda County called the developer an "honest broker in their dealings with us."

Port Commission President John Protopappas said the sale of Oak-to-Ninth signals the end of the port's maritime operations southeast of Jack London Square .

The increasing size of tanker ships has made the relatively narrow and shallow inner Estuary unsuitable for navigation. The port's maritime operations are now all west and northwest of Jack London Square .

At the same time, it's unclear what will happen to the historic Ninth Avenue maritime terminal under the deal. Ghielmetti said he and his partners have not decided what they will do with the long waterfront warehouse.

The biggest hurdle facing the developers and the port likely will be getting approvals from the state Lands Commission, which oversees waterfront land under Tidelands Trust law.

The port hopes to get the Tidelands Trust designation transferred from Oak-to-Ninth to another port property. If the port fails, Ghielmetti said the deal will collapse because Tidelands Trust law prohibits the sale of waterfront public land to private individuals or corporations.

Ghielmetti and Omar Benjamin, port director of Commercial Real Estate, estimated that all of the regulatory approvals could take two to five years. Ghielmetti estimated it will take an additional five to 10 years to complete the development project. The developers also plan to lease a small section of Oak-to-Ninth.

Benjamin said the port and the developers also have not yet decided how much of Estuary Park will be included in the deal. The amount will be dependent on the resolution of the Tidelands Trust issue.

When completed, the Oak-to-Ninth deal will mark the second major sale of port waterfront property to private developers in recent years. In late 2001, the port commission agreed to sell much of Jack London Square to another pair of influential developers, Hal Ellis and James Falaschi. 

(c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Robert Gammon, STAFF WRITER Section: Local & Regional News (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc.

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September 2, 2003 OAKLAND  
The Oakland Tribune (CA) 
Port ready to sell blight for condos - Housing, retail developer would pay $18 million for industrial land near Jack London Square 

The Port of Oakland is poised to move forward with a plan to sell nearly 60 acres of public property south of Jack London Square to a major development team that wants to build condominiums and retail outlets surrounded by open space.

The team of Signature Properties of Pleasanton and Reynolds & Brown of Concord has agreed to pay the port $18 million for the mostly blighted industrial land, known as Oak-to-Ninth.

The team, which uses the name Oakland Harbor Partners and has been negotiating with the port for two years, says it also is committed to spending at least $16 million to clean up the waterfront property sandwiched between the Nimitz Freeway and the Oakland Estuary.

If the deal goes through, it will set in motion what promises to become the largest private development along Oakland 's waterfront in decades, producing $400 million to $500 million in private investment, according to some port estimates.

The Port Commission is scheduled to vote on an agreement today that would pave the way for the sale. However, the deal cannot be finalized until the port works out a way to overcome legal restrictions on waterfront property.

"It's going to take several years to get it done," said Signature Properties President Michael Ghielmetti. "And that assumes a whole lot of people and whole lot of agencies will be satisfied."

Residents of the Fifth Avenue artists' colony oppose the sale, calling it a no-bid deal given to a politically-connected developer that could end up violating the city's Estuary Policy Plan.

"They're using up the waterfront and depleting public access," said Pam Weber, a resident of Fifth Avenue . "If they're going to sell this, it should go to the highest bidder."

The artists' colony sits in the middle of the Oak-to-Ninth property.  The colony is privately owned and not for sale, but it would be surrounded by the Signature Properties/Reynolds & Brown development.

However, Fifth Avenue artisans and crafts people are concerned the city will take Fifth Avenue through eminent domain and sell it to Signature Properties.

The artisans and the owner of Fifth Avenue , J.W. and Barbara Silveira, have threatened to sue over a City Council decision in July that would allow such a move.

Although council members have said Fifth Avenue will be protected, the council refused to exclude Fifth Avenue from possible eminent domain proceedings. In addition, Ghielmetti has expressed interest in buying Fifth Avenue .

Clean-up costs

Councilmember Danny Wan (Grand Lake-Chinatown) said he supports the Signature Properties development of Oak-to-Ninth, noting neither the city nor the port has the funds to clean it up and develop it.

"This developer is going to contribute a lot of money to clean it up," said Wan, whose district includes Oak-to-Ninth. "If we're ever going to develop this property, there has to be some (private) developer to do it."

Signature Properties/Reynolds & Brown first earned the right to negotiate with the port on Oak-to-Ninth two years ago when it won a bid competition against another major development team, Shorenstein Co. of San Francisco and Interland Corp. of San Mateo .

However, the sale of the property -- just like the port's recent sale of nearby Jack London Square to another pair of well-connected developers -- was never put out to bid. Shorenstein had proposed leasing the property.

Selling the land to Signature Properties will require the port to navigate several regulatory and legal obstacles because much of Oak-to-Ninth is encumbered by the Tidelands Trust.

Under Tidelands Trust law, publicly-owned waterfront land cannot be sold or given to private corporations or individuals. To get around that prohibition, the Tidelands Trust designation would have to be lifted from the Oak-to-Ninth property.

Trading properties

Omar Benjamin, port director of Commercial Real Estate, said the port may have to "trade" other port property into the trust in return.  Under trust law, such property must be of equal or greater value to the land traded out of the trust. Benjamin, however, would not identify which port property would be traded for Oak-to-Ninth.

"There are options and strategies but nothing that I can lay my hands on right now," he said.

The value of Oak-to-Ninth after it is cleaned up was independently appraised at $34 million, according to a report by Benjamin. Instead of the port paying the clean-up and selling the property, the port and Signature Properties/Reynolds & Brown agreed the development team would pay the clean-up and buy the property for $18 million.

Under the deal, the development team would purchase insurance should the clean-up exceed $16 million. If it's less, the two sides would split the savings.

But Ghielmetti said the costs could reach $20 million to $25 million.  The development team also plans to lease a small section of the property along the Estuary.

The development team has yet to come out with a detailed plan for Oak-to-Ninth, preferring to say it wants a mix of residential, retail and open space.

Environmental approval

Once the development team discloses its plans, those plans must undergo the full environmental approval process and must obtain approvals by the city Planning Commission and the City Council. In addition, the plans must conform to the Estuary Policy Plan, which governs development along the waterfront.

The development team plans to ask the city for a subsidy -- in the neighborhood of $20 million. Ghielmetti said they plan to request the property taxes generated by the development.

The development team is well established in Oakland . Signature built the new Durant Square housing development on the San Leandro border and is nearly finished with the condominium complex next to Preservation Park in downtown.

The team has been among the top campaign contributors to Oakland politicians, especially state Sen. Don Perata, D-Oakland. Both Signature Properties and the Reynolds Family Trust gave Perata $6,400 in the first half of 2003, the maximum allowed under Proposition 34 contribution limits.

Staff Writer Paul Rosynsky contributed to this report.  (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Robert Gammon, STAFF WRITER Section: Local & Regional News (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

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July 15, 2003 OAKLAND  
The Oakland Tribune (CA)
Artists colony fears development - Oakland 's waterfront redevelopment project could displace longtime Fifth Avenue community

A coalition of local artisans, small businesses and a large property owner is angry about a sweeping plan it says could wipe out a decades-old waterfront arts colony and replace it with condominiums.

If the City Council refuses tonight to exempt the Fifth Avenue arts community from the plan, or at least guarantee the city will not take over the arts colony through eminent domain, the coalition says it will haul the city into court.

"We're just business people down here trying to make a living," said Charles Weber, who has operated his antique speed boat restoration business on Fifth Avenue since the early 1960s. "This is expensive real estate and the developers are licking their chops to get at it."

Top city officials maintain there's no need to exempt the artists colony from the huge Central City East Redevelopment Project because they say the community will be protected, although it may have to move from its current home of rambling World War II era warehouses.

And city officials say the redevelopment plan could actually insulate the artists colony from the whims of property owners J.W. and Barbara Silveira. The pair have held title to the Fifth Avenue property occupied by the artists colony for more than 40 years.

"What if Silveira, someday, decides to sell it to some other developer who wants to build luxury condos?" said City Councilmember Danny Wan (Grand Lake-Chinatown), whose district includes the Fifth Avenue arts community. Under the redevelopment plan, the city would be obligated to find new homes for the artisans and small business owners -- something it would not have to do if the area were exempt from the project, Wan and other officials noted.

At the center of the controversy over Fifth Avenue arts community is the city's vision for a blighted swath of waterfront land southeast of Jack London Square that sits at the mouth of the Lake Merritt Channel where it meets the Oakland Estuary.

Last November, Oakland voters approved a $198 million bond measure, part of which is earmarked to spruce up the area. In addition, the Port of Oakland in September 2001 chose a master developer, Signature Properties/Reynolds & Brown, to turn 60 acres of port property along the Estuary into an upscale neighborhood of2,000 low-rise condominiums.

Those 60 acres of port land are known as Oak-to-Ninth, running from Oak Street southeast to the historic Ninth Avenue maritime terminal.  The port is in negotiations to sell all of that land to Signature/Reynolds & Brown as part of the port's ongoing sell-off of waterfront property not needed for shipping operations or the Oakland International Airport .

The Fifth Avenue artisan community sits almost exactly in the middle of the Oak-to-Ninth property. Two years ago, Signature/Reynolds & Brown said it had no designs for the Fifth Avenue artisan community, noting it's protected by the city's Estuary Plan, a blueprint for Oakland 's waterfront.

But after being chosen as the port's master developer, current Signature Properties President Mike Ghielmetti contacted the Silveiras about Fifth Avenue. But the Silveiras told Ghielmetti the land wasn't for sale.

At the same time, the city chose to include the Fifth Avenue property and all of Oak-to-Ninth in the sprawling Central City East Oakland Redevelopment Project. The plan would generate approximately $1 billion in tax revenue for the city over the next 45 years to redevelop a huge slice of Oakland from Lake Merritt south to the San Leandro border, said Dan Vanderpriem, redevelopment manager for Oakland's Community and Economic Development Agency.

The plan has engendered no controversy except from the Fifth Avenue artisans and small business owners and the Silveiras. They're concerned the city would use its eminent domain powers under the plan to take Fifth Avenue from the Silveiras and give it to Signature/Reynolds & Brown as part of an estimated $20 million to $30 million city subsidy for the Oak-to-Ninth project.

"Why else would the city put this property in the redevelopment plan?" said Charles Steidtmann, one of several attorneys representing the Silveiras, who have a history of litigation with the city.

The Silveiras and the 50 or so artisans and small business owners of Fifth Avenue also said they were not properly notified by the city about the redevelopment project or the accompanying environmental study. Vanderpriem and other city officials said the Silveiras were notified properly and the city had no legal obligation to notify all of the artisans because they don't own the property.

Ghielmetti said in an interview on Friday he "was not looking to kick out" the artisans from Fifth Avenue . He also said it would not be a problem for his Oak-to-Ninth project if the city were to guarantee it would not take Fifth Avenue through eminent domain.

Robert Shapiro, an attorney for the Silveiras, said his clients would welcome such a guarantee.

However, the prospects for such a promise appear to be dim. Two weeks ago, the council voted unanimously to move forward with the redevelopment project without guarantees for Fifth Avenue . Tonight, the council is poised to affirm that decision.

Councilmember Wan said the Fifth Avenue artisans and businesses had failed to make their case as to why their community should get a special exemption from the plan. 

(c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

Author: Robert Gammon, STAFF WRITER Section: More Local News (c) 2003 The Oakland Tribune. All rights reserved. Reproduced with the permission of Media NewsGroup, Inc. by NewsBank, Inc.

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