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City outlines Alameda Point sale and lease strategy as infrastructure costs rise; council introduces leases for Bluetech tenant and fire admin move
Summary
Staff reported the estimated remaining backbone infrastructure cost for Alameda Point has climbed to roughly $900 million; disposition strategy will prioritize Phase 1 loop parcels and consider creative financing. Council introduced leases for Kai Concepts and a five‑year lease to house consolidated Fire Department administration.
City officials told the Alameda City Council on Tuesday that the price tag to finish backbone infrastructure at Alameda Point has increased substantially and that disposition strategy will focus on selling parcels tied to completed infrastructure loops while exploring other financing and lease options.
Abby Thorne Lyman, director of base reuse and economic development, briefed the council on a disposition approach that prioritizes parcels adjacent to the completed Phase 1 infrastructure loop so the city can capture value from recently installed streets and utilities. She said the most recent estimate for remaining infrastructure at the former naval base is roughly $900 million, up from an earlier estimate of about $700 million adopted in 2020. "We're not sure this place can pay for itself," Thorne Lyman said, adding that the city should pursue grants and other external funding sources and remain flexible on long‑term leases and sales.
Staff identified several candidate properties for near‑term disposition action, including sale negotiations on Building 92 and consideration of a long‑term ground lease with an option to purchase for Building 41 when it is conveyed by the Navy. Staff also said they would explore adaptive reuse options for the Bachelor Enlisted Quarter complex and noted deferred maintenance on many conveyed properties is affecting market value.
Council also introduced two leasing measures: staff recommended (and council introduced on first reading) two five‑year leases with Kai Concepts LLC for space in Building 168 and a portion of Pier 1 to support Bluetech research and testing — combined revenue projected at more than $1.7 million over five years. Separately, the council introduced a five‑year lease for the Alameda Fire Department administrative consolidation at 1001 Marina Village Parkway; Fire Chief Nicholas Luby said the consolidated office will allow staff to free up space at Fire Station 1 for operational improvements such as a decontamination area and improved crew facilities. The proposed fire admin lease totals about $783,636 over five years and includes landlord‑paid lobby buildout and 10 level‑3 EV chargers on the site.
Next steps: staff will continue negotiations on Building 92 and explore financing and grant options; the introduced lease ordinances will return for subsequent votes.
