Apr 23

Project Status Update - April 23, 2020

Posted on April 23, 2020 at 1:39 PM by Guy Bjerke

Lennar
The City has not heard from anyone associated with Lennar since the Council meeting on March 24. On March 26 the City sent a letter formally relaying the Council’s decision not to extend the Exclusive Negotiating Agreement (ENA) and our commitment to return advanced funds and work cooperatively to end our agreements. The ENA expired on March 31. Project staff and the Finance Department are working to determine the balances in the Specific Plan/EIR Reimbursement Agreement account and Disposition & Development Agreement account with the intent of returning funds advanced by Lennar to them by the end of this month. The current estimate is that the combined accounts will return approximately $800,000 – consistent with the provisions of each agreement. 

Navy
The Navy is aware of the expiration of the ENA with Lennar and affirmed their commitment to continue to work with the City towards property transfer. The Navy is working to address a new request by the Environmental Protection Agency that the former Concord Naval Weapons Station be assessed for a new contaminant group known as PFAS. The Navy thinks this work – which must be conducted over the entire property, including our 1,200-acre First Transfer – will take two seasons (years.) So, First Transfer of property to the City is now not likely to occur before 2022.

State Surplus Lands Act
Project staff are working with our local legislators and our advocacy team (Townsend) to gain an exemption from legislation that was adopted last year – requiring the City to first make any City-owned surplus property available to affordable housing developers. The ENA with Lennar protected the Reuse Project’s Phase 1 from this legislation – but with the ENA having expired the entire project is now subject to it. The adopted Reuse Area Plan already makes a significant commitment to affordable housing and combined with the long-term nature of our planning effort our Project should be exempt. Once the Legislature reconvenes the exemption will either be sought in separate legislation or as part of a Budget trailer bill.

Selecting a new Master Developer or Team to complete Specific Plan/EIR
There are numerous issues and policy questions that need to be analyzed and considered by the City Council before moving forward in a new Master Developer selection process. Project staff and consultants are assembling a “lessons learned” document considering, but not limited to, issues surrounding the original selection process, term sheet clarity, and transparency of financial information.

Project staff will recommend a timeline for selecting a new Master Developer later this year. It will be important to wait until the Covid-19 crisis has stabilized, the lessons learned document has been prepared, and the City Council has publicly considered and provided direction on policies crucial to a successful selection.

Project Budget
The Reuse Project going forward will be funded by the remaining proceeds of previous loans from the City. No new loans or funding from the City will be requested. The goal will be to judiciously use the existing account balance to undertake essential tasks and work related to securing a new Master Developer. Project staff suspended most work on the Reuse Project on November 1, 2019. The loan account balance left to carry the Reuse Project forward as of March 31, 2020 is approximately $3 million. 

Coast Guard Property
The General Services Administration/Coast Guard responded negatively to the City/DeNova Home’s purchase offer made last December. The GSA has indicated their intent to put the property up for public sale at a yet to be determined time.


Jul 19

Status Bullets - July 19, 2019

Posted on July 19, 2019 at 10:19 AM by Guy Bjerke

July 19, 2019 – Project Status Update

Property Transfer

  • The Park District took “constructive possession” of about 2,300 of their 2,600 acres of property for the conservation area/Regional Park in a ceremony on July 13, 2019.  Ownership will be transferred from the National Park Service to the Park District later this year.  The remaining acres will come later after the Navy finds it suitable for transfer.

  • The City is working with the Navy to reach First Transfer of 1,200 acres of the 2,300 acres of property allocated to the City.  First Transfer to the City is now expected in the Summer/Fall of 2020.  The remaining acres will come later after the Navy finds it suitable for transfer.

  • The County expects transfer of 75 acres of property for their planned First Responder Training facility at the end of 2020.

  • The City is working with the Lennar/FivePoint team on the project’s financial model so that we can re-engage and complete our negotiations with the Navy regarding the payment terms for City’s parcels.

Finding of Suitability to Lease (FOSL)

  • The Navy is completing a Finding of Suitability to Lease or FOSL so that negotiations regarding leasing the remainder of the Base to local recipients can take place.  Reaching agreement on lease terms would remove the Navy from the day-to-day management of the Base – but not impact their continued obligation to clean up contaminated parcels prior to transfer.

Specific Plan/CEQA Review

  • The Lennar/FivePoint team continues to write the Specific Plan for all 2,300 acres of development that will occur over the next 30 years.  Lennar is the designated Master Developer for Phase 1 of the development, roughly the first 500 acres.  Several technical issues around the design of required infrastructure has delayed the completion of the Specific Plan draft.

  • City staff and consultants are preparing the environmental analysis of the planned development – reviewing potential impacts, like traffic, and ways to address them in the Specific Plan.


  • Both the draft public Specific Plan and draft public Environmental Impact Report are expected to be released for public consideration in January 2020 – with public meetings, workshops and hearings – leading to a Council decision in the Summer of 2020.

  • The Community Advisory Committee is on hiatus until the draft public Specific Plan is ready for their review and consideration – now likely in January 2020.

Resource Permitting

  • The City’s efforts to secure site-wide resource permits – i.e. Wetlands, endangered species protection, and creek restoration is on track with the goal of obtaining the necessary permits ahead of planned infrastructure work.

Campus District Visioning / Tournament Sports Park Conceptual Planning

  • Throughout 2019 the City embarked on two parallel projects – visioning for the proposed 120 acre Campus District and conceptual planning for the 175 Tournament Sports Park/Great City Park.  After numerous public meetings of the Blue Ribbon Committee regarding the Campus District and public workshops regarding the Sports Park – both reports were presented and accepted by the City Council at their June 4 meeting.  Both reports principles and concepts are being included in the draft Specific Plan and environmental analysis.

Disposition and Development Agreement

  • The Disposition and Development Agreement between the City and the Master Developer for Phase 1 is tied to the accepted Term Sheet and the mitigations to be determined during discussions about the Specific Plan and Environmental Impact Report.  The DDA will be one of the documents the Council considers together with the SP and EIR. 

Assuming the City Council approves the Specific Plan in the Summer of 2020, the expected construction timeline is as follows:

Horizontal Infrastructure – 2022/2023

The amount design work, coordination, and additional permitting may delay horizontal infrastructure work (sewer, water, electricity, and roads, etc.) to 2022 or beyond.

Vertical Construction – Start 2023

The timing of vertical construction (homes, offices, and stores) is largely dependent on successful infrastructure installation, but is not expected before 2023.

The project has an estimated 30 year build out.

Website: concordreuseproject.org                                     


Oct 09

Status Bullets - October 9, 2018

Posted on October 9, 2018 at 5:13 PM by Guy Bjerke

October 9, 2018 – Project Status Update
Link to Implementation Schedule Bar Chart

Property Transfer

The City is working with the Navy and other local recipients to reach First Transfer of property over the next 12 months.  The Park District expects to receive about 2,300 of their 2,600 acres by the end of this year.  The Navy hopes to reach first transfer for the County and City – all 75 acres for the County and 1,200 acres of the City’s 2,300 acres – by the summer of 2019.

The City is preparing property lines and legal parcel descriptions for the entire Base and preparing a Transition Plan with all local recipients to ensure access, security and utility needs are coordinated during the transfer and development phases of the project.

The City is working with the Lennar/FivePoint team on the project’s financial model so that we can re-engage and complete our negotiations with the Navy regarding the payment terms for City’s Economic Development Conveyance parcels.

Finding of Suitability to Lease (FOSL)

The Navy is completing a Finding of Suitability to Lease or FOSL with the idea that after First Transfers are achieved in 2019 – negotiations regarding leasing the remainder of the Base to local recipients will take place.  Reaching agreement on lease terms would remove the Navy from the day-to-day management of the Base – but not impact their continued obligation to clean up contaminated parcels prior to transfer.

The Council will be holding a study session on Tuesday, October 30 to hear from the Navy and representatives from the regulatory agencies about the clean up on our Base, and how our clean up compares with the clean-up and concerns being raised at the Hunters’ Point project.

Disposition and Development Agreement

The Disposition and Development Agreement is tied to the accepted Term Sheet and the mitigations to be determined during discussions about the Specific Plan and Environmental Impact Report.  The DDA will be one of the documents the Council considers together with the SP and EIR at the end of 2019.  The DDA framework is being assembled by the City and Lennar/FivePoint teams – with negotiation sessions starting in early 2019.

The Lennar/FivePoint team has, so far, held three meetings with representatives of the Contra Costa Building and Construction Trades Council to negotiate issues associated with Project Labor Agreements.  Another meeting is expected in the next month.

The City and Lennar/FivePoint team has held several discussions with the Community Coalition for a Sustainable Concord this year to understand the additional issues the Coalition would like to see included in the DDA.

Specific Plan/CEQA Review

Based on Council direction on August 22, Lennar/FivePoint is now writing the Specific Plan.  The Community Advisory Committee is on hiatus until the draft public Specific Plan is ready for their review and consideration – now likely in spring 2019.  Staff will be bringing a resolution extending the terms of CAC members from December 2018 to December 2019 for your consideration at your meeting on November 13.

Council also asked staff to hold additional meetings for the North Concord neighborhoods.  A meeting was held last Thursday evening (October 4) for residents living within 500 feet of the North Concord BART Station or Coast Guard property.  A meeting for the larger neighborhood is planned for next Tuesday evening, October 16 at the senior center beginning at 6 p.m.

The CEQA or environmental review will be getting underway in November – with the publication of a Notice of Preparation and a public scoping session, likely, in December.  The draft public Environmental Impact Report will likely be ready for review and comment in the summer of 2019.

This means the draft Specific Plan and draft EIR are unlikely to enter into our formal consideration process before the fall of 2019 and will not reach the City Council until the end of 2019 or early 2020.

Therefore, the timeframes for work and public review of the Specific Plan and EIR are now longer than we imagined last May when the Council extended Lennar/FivePoints negotiating agreement to July 2019.  Staff will be bringing a second extension of the negotiating agreement to the Council for your consideration at your meeting on November 13.

Resource Permitting

The City’s efforts to secure site-wide resource permits – ie. Wetlands, endangered species protection, and creek restoration is on track with the goal of obtaining the necessary permits ahead of planned infrastructure work.

Campus District Visioning

Earlier this year the Council retained a planning consultant and formed a Blue Ribbon Committee to evaluate opportunities and options for the development of the Campus District.  The BRC held its first meeting in September and will meet on monthly basis through April 2019 to consider a series of topics that should result in a report establishing a community vision for the Campus District.

Tournament Sports Park Conceptual Planning

Staff has also begun the conceptual planning discussion for the Tournament Sports Park.  A request for proposals to assist with planning was issued last summer and staff will be bringing forward a recommended firm and contract to the Council for your consideration at your meeting on November 13.  The planning process itself will likely start in January and result in a report of recommendations for Council consideration in the April/May 2019 timeframe.

Horizontal Infrastructure – 2022/2023

The amount design work, coordination, and additional permitting may delay horizontal infrastructure work to 2022 or beyond.

Vertical Construction – Start 2023

The timing of vertical construction is largely dependent on successful infrastructure installation, but is not expected before 2023.