Treasure Island deal remains unsigned

Nearly two weeks after announcing that the Navy will sell Treasure Island to San Francisco, the parties still have not signed any agreements related to the deal.

A hotel, ferry terminal, offices, shops, parkland and thousands of new homes are planned to be built on the former Navy base in the middle of the Bay.

“The terms of the agreement include a guaranteed payment to the Navy of $55 million, followed by an interim payment of another $50 million, plus an additional share of potential further profits,” Mayor Gavin Newsom and the Navy announced in separate Dec. 16 press releases.

San Francisco officials originally hoped to secure the land for free.

The purchase price will be paid for up by private partners working on the redevelopment project, according to Michael Cohen, who serves as Mayor Gavin Newsom’s economic adviser.

The first payment is likely to be due after ownership of the 450-acre island is conveyed to San Francisco, according to Cohen. Payments are expected to be spaced out over approximately a decade, he said.

“There’s no signed agreement, but we’ve been working for a number of years on trying to get an in-principle agreement with the Navy,” Cohen said. “The fact that the Secretary of the Navy and the mayor shook hands on the structure of a deal is significant. We do have to put pen to paper and work with the lawyers.”

The costs will be repaid using redevelopment profits and as little as $55 million could be paid to the Navy for the island if the project underperforms financially, according to Cohen.

Those private partners are also expected to incur more than $1 billion in infrastructure costs and billions more in building and construction costs during work that’s expected to begin in 2011 and last for at least a decade.

Doug Gilkey, the Navy’s Base Closure Manager for Treasure Island, where Pacific war operations were directed during World War II, said he expects an agreement between the Navy and The City will be signed early next year.

“A term sheet or memorandum of agreement has not been completed,” Gilkey said in a statement. “The Navy and city will be working through the details of a memorandum of agreement over the next three months.”

Revenue from sale of the island will be placed into a U.S. Base Realignment and Closure Division account, according to Navy spokeswoman Melanie Ault.

Bay Area NewsGovernment & PoliticsPoliticsUnder the Dome

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Kindergarten teacher Chris Johnson in his classroom at Bryant Elementary School ahead of the school’s reopening on Friday, April 9, 2021. (Kevin N. Hume/S.F. Examiner)
SFUSD students are going back to the classroom

After more than a year of distance learning, city schools begin reopening on Monday

Keith Zwölfer, director of education for SFFILM, stays busy connecting filmmakers and studios with public, private and home schools<ins>.</ins><ins> (Kevin N. Hume/S.F. Examiner) </ins>
Streamlined SF film festival focuses on family features

In the early days of the San Francisco International Film Festival, the… Continue reading

“Gay Passover,” a fun Haggadah, includes some cocktail recipes. <ins>(Courtesy Saul Sugarman)</ins>
A Passover journey toward something different

It was nice to see my family, and I look forward to reconnecting with friends

Oakland A’s left fielder Tony Kemp fielded a fly but missed the catch in the April 5 game against the Los Angeles Dodgers at the Oakland Coliseum. <ins>(Chris Victorio/Special to S.F. Examiner)</ins>
Bay Area sports for week of April 11, 2021

A look at the upcoming major Bay Area sports events (schedules subject… Continue reading

The involving historical novel “The Bohemians” imagines photographer Dorothea Lange’s life in San Francisco. (Courtesy photo)
‘Bohemians’ explores life of legendary photographer Dorothea Lange

Artist’s talent, compassion revealed in Jasmin Darznik’s historical novel

Most Read