The Port of Oakland Board of Port Commissioners voted 6-1 to approve an ordinance authorizing the sale of certain improvements located at Jack London Square to Jack London Square Partners (Ellis Partners and James Falaschi - Jack London Square Phase II Master Developer).
Published: January, 2002
The Port of Oakland Board of Port Commissioners voted 6-1 to approve an ordinance authorizing the sale of certain improvements located at Jack London Square to Jack London Square Partners (Ellis Partners and James Falaschi - Jack London Square Phase II Master Developer).
Port Board President Phil Tagami said, "We are fortunate to be working with the high caliber of talent that Hal Ellis and James Falaschi (Jack London Square Partners) represent. We chose them based on their tremendous local experience, excellent reputation, commitment to the Estuary Plan and overall qualifications as developers."
The transaction for Jack London Square Phase II is comprised of three elements: $17.2 million to be paid to the Port for the sale of four buildings in Jack London Square; 66-year leases for the land on which the four buildings sit; and the right to develop a nearby waterfront complex of offices, restaurants and shops. The Port of Oakland previously selected JLS Partners as master developer for Jack London Square Phase II April 24, 2001.
A plan was adopted in February of 1999 to restructure the Port’s commercial real estate holdings to improve the bottom line profitability of the Port as well as to allow for greater focus on its main lines of business – its seaport and Oakland International Airport. The proposed sale of portions of Jack London Square is part of the Port’s long-range plan developed three years ago to stem prior losses from its real estate holdings of waterfront land.
In October 2001 a California State Audit determined that the Port of Oakland effectively managed its assets over the last 10 fiscal years and should remain financially competitive in the future. However, while Aviation and Maritime divisions have been profitable, the state auditor made a number of recommendations for the Port of Oakland’s Commercial Real Estate division to improve its bottom line.
To reduce the effect of losses on the Port’s overall operations, the state auditor recommended that the Commercial Real Estate division should take the following actions:
» Complete the action plan (Restructure & Development Plan) approved by the board in 1999.
» Continue to look for ways to increase revenues and decrease costs associated with managing its assets.
Moving forward with Jack London Square Phase II is a significant part of Commercial Real Estate’s Restructure & Development Plan and supports the recommendations from the California State Audit.
From the very beginning, there has been a process relative to the second phase of development at Jack London Square. That process began with a formal Request for Qualifications (RFQ) in October of 1999 that opened this opportunity to developers both locally and nationally. The project is a public-private collaboration involving the Port of Oakland, City of Oakland and Jack London Square Partners.
"Jack London Square Partners is a local team committed to sustainable development, specifically with respect to landscape preservation, connecting the waterfront to the City and economic benefits," said Port Executive Director Tay Yoshitani. "The Port of Oakland is a steward of the waterfront and we are pleased that Jack London Square Partners joins us in that role with its adoption of the Estuary Plan," Yoshitani added.
"Jack London Square Phase II will offer tremendous benefits to the public including waterfront access, alternative transit, increased city revenues, and good local jobs," stated Port of Oakland Commercial Real Estate Director Omar Benjamin."
