Developers guaranteed 22.5 percent in Treasure Island deal with Navy – breakdown of who gets what

Citation: Hearing on National Defense Authorization Act for Fiscal Year 2011 and oversight of previously authorized programs before the Committee on Armed Services, House of Representatives, One Hundred Eleventh Congress, second session : Readiness Subcommittee hearing on budget request for military construction, family housing, base closure, facilities operation and maintenance, hearing held March 18, 2010.

Guaranteed percentages on investment into Treasure Island, who gets what in hte
Base Realignment and Closure (BRAC) of the Naval Base.

Investors this agreement added another 4.5% to the investors to 22.5%
The Navy gets 35 % after the Investors get their cut and the
The city of San Francisco gets to pay for it.

We would like to highlight a breakthrough on negotiations for the EDC of Naval Station Treasure Island. Negotiations had been ongoing with the City since 2007. Due to the disparity of the DON [Department of the Navy] and City valuations, many compensation options were reviewed to convey the property while still obtaining Fair Market Value (FMV). The Navy had previously offered deferred compensation and percentages of gross revenue. The City had offered profit participation subordinate to a guaranteed return to developers. With adoption of language in the Fiscal Year 2010 National Defense Authorization Act, Congress enacted new EDC language that allows flexibility in transfer terms for EDCs including accepting profit participation structures.

Utilizing this authority, we were able to announce in December that an agreement in principle was reached with the City of San Francisco to convey 996 acres of the former Naval Station Treasure Island. The agreement guarantees $55M to the Navy paid over 10 years with interest and an additional $50M paid once the project meets a return of 18%. Then after an additional 4.5% return to investors (22.5% total), the Navy would receive 35% of all proceeds. This deal represents a unique opportunity to spur development, while still providing a guaranteed payment to the Navy as well as a share in the benefit of what both the City and the Navy expect to be a successful redevelopment and job generating project.

The environmental cleanup of Treasure Island is nearing completion. Once the City finalizes California Environmental Quality Act documentation and approvals with the Board of Supervisors in late 2010 or early 2011, we will be in position for the clean transfer of more than 75% of the base. The remaining cleanup includes the continued treatment of two small groundwater plumes and removal of low level radioactive contamination. These projects and the remaining transfer are expected to be complete well before the land is needed for subsequent phases of the redevelopment project.”

Prior BRAC Environmental Cleanup

“The Department has now spent about $4.3 billion on environmental cleanup, environmental compliance, and program management costs at prior BRAC locations through FY 2009. Our remaining environmental cost to complete for FY 2010 and beyond is approximately $1.4 billion. This includes $160 million cost growth which is due in part to additional munitions cleanup at Naval Air Facility Adak, AK and Naval Shipyard Mare Island, CA, clean up at Naval Station Roosevelt Roads, Puerto Rico, and additional long term monitoring program-wide. The increase is also associated with additional radiological contamination at Naval Station Treasure Island, CA, Naval Air Station Alameda, CA, and Naval Shipyard Mare Island, CA

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2011 Nuclear Radiation Maps of Treasure Island Housing made by the Navy

Citation: TREASURE ISLAND, SITE 12 GAMMA SURVEY REPORT SURVEY DATES: APRIL 5-7, 2011

In 2011 the Navy conducted a radiological survey and found Radium, Thorium, Uranium, Radioactive Potassium and Radioactive Thallium under the housing at Treasure Island by driving a towed array of radiation detectors over the streets and yards producing a map of radiation for the Housing on Site 12 at Treasure Island Naval Base. This article will show many of the maps created of the Radiation at the housing on Treasure Island.

The materials were not cleaned up at the time, but these isotopes give off radiation at certain frequencies and by reading these frequencies we can know what types of materials are giving off the gamma and X rays of these specific isotopes. The Chart below shows the different frequencies and their corresponding isotopes listed across the top. This is gamma radiation. Alpha and Beta radiation require laboratory work to confirm their presence. So you would not be able to detect Plutonium in this study, which was used in the Radiation Training at Treasure Island.

The radiation was centered on the area of the island where the Navy conducted the Radiological, Chemical and Biological Training using mock ups of a ship, the USS Pandemonium, an airplane, and a field gun. Eventually the Navy would collect Radium objects that were in the first 10 inches of soil and place them in boxes to be sorted out later in 2018.

In response to the increase in radiation, the Navy extended the chain link fences in order to protect the residents from what turned out to be a nuclear disaster. See Survey Findings below.

Continue reading “2011 Nuclear Radiation Maps of Treasure Island Housing made by the Navy”