The Disposition and Development Agreement (DDA) has been released regarding the purchase of the Daughtrey’s building from the County which purchased it in 2011. The building has not had a permanent tenant in over ten years. The DDA is comprehensive in its scope, but has some very definite time deadlines. These are all spelled out in detail in “Exhibit C,” the Schedule of Performance with a series of “no later than” dates.
If all of these dates are extended to the maximum allowable time, we see that the scope of this project could drag out for more than seven years.
The DDA is set to be voted on by the Alameda County Board of Supervisors on June 24th. Assuming that the deal is approved, here are some highlights from the Schedule of Performance, illustrating how excruciatingly long this redevelopment could be.
- Effective Date: The date when the conditions set forth in the DDA must be satisfied- No later than December 31, 2015.
That means the County and Purchaser have until December 31, 2015 to satisfy all the pre-deal requirements the DDA talks about.
- Deposit: The developer has to make his initial deposit with the title company to purchase the property. No later than January 10, 2016.
This means the Developer potentially does not need to pay any money out on the deal for one and a half years.
- Execution of the Parking Agreement. Date when the County must finalize and commence the shared parking plan construction: No later than May 28, 2016
That means the County does not have to start the construction on the new shared parking plan for almost two years. The multiple blighted and ineffectual lots could remain as-is until then
- Preliminary Conceptual Development Submittal: No later than August 25, 2016
- Pre-Leasing Commitment from Tenants: No later than December 24, 2016
This means the developer does not need to obtain and finalize commitments from his secondary tenants for two and a half years.
- Parking Plan Construction Complete: No later than December 24, 2016
This means the fancy new shared parking lot behind the Daughtrey’s building, Ice Creamery, and Fong’s does not potentially need to be completed for two and a half years.
- Final Approval by County of Conceptual Plans: No Later than June 21, 2017
- Application for Land Use Approvals: No later than December 17, 2017
- Land Use Approvals obtained: No later than October 12, 2018
- Final Construction Drawings Submitted: No later than March 10, 2019
- Closing on Sale of Property: No later than February 2, 2020
This means that the actual closing on the sale of the property could potentially not happen for five and a half years.
- Construction Begins: No later than May 1, 2020
- Completion of Construction: No later than August 31, 2021
This means that the final reconstruction of the building and surrounding property (and thus the end of the ongoing blight,) does not potentially need to be completed for a little more than seven years.
- Deal Complete: No later than September 29, 2021
In summary, from the date that the Board of Supervisors is set to approve the DDA, June 24, 2014 to the final potential date of completion is 2655 days, or seven years, three months and six days.