Last week the City put out a press release about the delay of the Site A plan. From the Press Release:
Rapidly rising construction costs have prohibited APP from finalizing its development budget and completing its financing plan in order to accept conveyance of Site A by the milestone date of April 11, 2017. Today, APP proposed to complete an amended plan within a 120-day timeframe that will allow them to proceed with the development, address the economic challenges, and deliver a quality project consistent with the design, intent and scope of the planned development.
Essentially in order to make the enormous cost of the infrastructure work is, well, more units, from the press release continued:
Their proposal includes a Development Plan Amendment to merge construction phases and deliver a larger first phase of the previously approved development, including more housing (with the potential for a portion to be dedicated teacher housing), park area, and infrastructure improvements. And, these additional improvements will provide more immediate benefit to the Main Street Neighborhood and Adaptive Reuse Area. This will allow the significant front-end infrastructure improvement costs to be allocated across a larger initial development program, preserving the integrity of the Site A design and offsetting otherwise prohibitive construction costs. At the same time, APP will complete its financing plan, execute a loan agreement with its capital investor, and ratify a purchase and sale agreement with a townhome builder by June 2017.
I don’t think that anyone who saw what Site A promised and what was expected of the developer to find this surprising. Every meeting held, every hearing, every rendering before shovels are in the ground is an enormous cost expended by the developer without any money coming in. We have these huge expectations of what we want the developer to provide and keep extending out our hands for more and in the end. What is important that comes out of this process is that the Main Street Neighborhood go forward in order to allow the Alameda Point Collaborative and friends project to break ground. The APC neighborhood has been neglected for too long with deferred maintenance because there have been promises that eventually there would new infrastructure that APC and others would be able to relocate their residents to. The biggest shame is that this delay with delay that plan.
And this is why I just can’t get excited about any Alameda Point plans anymore, not until there are actual shovels in the ground.