January 8, 2009;

Earlier this week, a local anti-development organization, "Save Our City Alameda," released a television commercial that makes several misleading claims about the City of Alameda and its finances. The commercial states that SunCal Companies, the City's master developer for the former naval air station at Alameda Point, wants a $700 million "bail-out" to build houses at Alameda Point. In fact, SunCal has requested no such subsidy, nor has the City or the Alameda Community Improvement Commission (Alameda's redevelopment agency) offered any.

In addition, since the land plan that SunCal has proposed is not consistent with the City of Alameda's charter, the plan cannot be accepted unless Alameda's voters approve a change to the City's charter or the land plan is approved by initiative. SunCal is considering placing such a matter on the November 2009 ballot.

Furthermore, the City Council adopted a policy several years ago requiring that all former Navy base redevelopment be fiscally neutral. In other words, the City's General Fund, which pays for public safety and other services, cannot subsidize base redevelopment in any way. The Exclusive Negotiating

Agreement between SunCal Companies and Alameda obligates the two parties to negotiate in hopes of reaching a purchase and sale agreement by July 2010. No deal has been reached yet; the negotiations are ongoing. Should the Alameda Community Improvement Commission decide, as part of the purchase and sale agreement, to invest tax increment funding in the Alameda Point project, staff estimates that the maximum amount that could be invested is $184 million over the life of the project.