CONCORD — The biggest housing venture within the East Bay’s latest historical past may hit one other snag as negotiations between town and its grasp developer seem like on a collision path.
Harmony First Companions, a growth crew linked to multi-generational constructing firms owned by the Seeno household, needs to amass property rights on the former Harmony Naval Weapons Station website earlier than it commits to any particulars of the venture.
That approach, if town’s imaginative and prescient for itemizing 1 / 4 of the 13,000 deliberate properties at reasonably priced costs doesn’t meet Harmony First Companions’ revenue objectives, the event crew can drop the venture and be reimbursed for planning-related prices, in keeping with a employees report for Tuesday’s Metropolis Council assembly.
The council can select to both begin transferring the Navy-owned property to Harmony First Companions instantly and lose leverage over the venture’s future, or deny the request and threat seeing a second a grasp developer stroll away in three years.
Metropolis officers say they have been blindsided by the maneuver after the event crew agreed final 12 months to collaborate in planning the venture first and buying the property later.
A sale now “simply makes it far more difficult ought to our relationship unravel,” mentioned Man Bjerke, town’s financial growth director.
And a lawsuit might be a kind of problems. Metropolis officers warn within the employees report that denying Harmony First Companions possession rights may result in “the property being tied up in litigation for a major time period.”
It will be the newest chapter in Seeno’s lengthy historical past of suing public businesses and combating environmental teams to push by means of its many housing developments, most just lately a 1,650-home venture within the Pittsburg hills that a decide stopped in its tracks earlier this 12 months.
In a letter to despatched to Bjerke late final month by crew executives Albert Seeno III, Richard Lewis and Phil Tagami, Harmony First Companions begins out by stating that even when it acquires the property rights instantly, it wouldn’t begin the venture with out town’s full approval of particular particulars.
However the letter then goes on to notice that the prices of hiring solely native union employees and guaranteeing a excessive share of reasonably priced properties make the venture impractical “for any accountable growth entity.”
Harmony First Companions declined to be interviewed for this story however mentioned in an e mail that if town is keen to reimburse the builders’ prices down the road, the crew is “prepared to speculate tens of millions and tens of millions of dollars and to dedicate a number of years finding out and getting ready” the venture’s particulars.
With 13,000 properties and tens of millions of sq. ft in business and enterprise area, the event can be comparable in measurement to a whole new neighborhood in Harmony.
Metropolis officers for years have sought to transform the long-decommissioned naval weapons website into housing, however by itself phrases. In 2020, the council parted methods with multinational developer Lennar Corp. over the corporate’s refusal to solely rent native union employees for the job.
To keep away from an identical destiny, the council requested Harmony First Companions to signal a venture labor settlement earlier than choosing it as grasp developer final August.
However making 1 / 4 of the properties reasonably priced is a “lofty aim” for a growth with such a big scope, mentioned Gloria Bruce of East Bay Housing Organizations.
“As all the time, we urge (the council) to suppose very rigorously about what’s earlier than them, as a result of it could be an actual disgrace to lose leverage at this level,” Bruce mentioned.
If Harmony First Companions walks away from the venture like Lennar did, there might be political ramifications as nicely.
Three Metropolis Council members are up for re-election this 12 months and two of them — Carlyn Obringer and Edi Birsan — are operating for a county supervisor seat within the June 7 major.
Birsan, who mentioned he has “full confidence” the 2 sides will attain an settlement, declined to state whether or not he would vote to grant Harmony First Companions’ request, however mentioned he empathizes with the builders.
“In the event that they’re going to exit and lay tens of million dollars out, what occurs if down the road now we have 5 new council individuals who say, ‘No, no, we’re not going to do it with these guys?’ ” Birsan mentioned, alluding to Seeno’s unfavorable popularity amongst many residents.
Bjerke equally mentioned he understands that a personal developer would need to defend towards future monetary legal responsibility. However signing away the property rights now may make the method “difficult and dangerous for town,” particularly as a result of Harmony First Companions appears to be suggesting council refusal might be a deal breaker, he mentioned.
Longtime critics of Seeno — particularly environmental teams — aren’t stunned by the newest twist. Save Mount Diablo, which had sued to cease the developer’s Pittsburg hills venture, mentioned in an e mail town can be liable to lawsuits if it “places all of the playing cards in Seeno’s pockets.”
“It will be a sweetheart deal and a clean verify to an untrustworthy developer,” the group mentioned in an e mail.