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Revitalize Alameda Point – SunCal Closes Waterman Junction Center in Barstow

Updated: SunCal, through their Revitalize Alameda Point political committee, leases space at 851 West Midway, Alameda, CA 94501

SunCal, the developer with the plan for Alameda Point, has just closed a project information center in Barstow, which supported a planned 25,000 unit housing project at Waterman Junction.

According to the Desert Dispatch, SunCal emptied Harvey House, which hosted the information center, and donated “more than 60 pieces of furniture and decoration to New Hope Village.” New Hope Village appears to be a home for battered persons.

According to SunCal Spokesperson Joe Aguirre, who is quoted in the article, there’s no work being done on the proposed Waterman Junction property, and SunCal still owes the City’s redevelopment agency tens of thousands of dollars:

SunCal currently owes Barstow about $69,000. That amount was reduced from about $83,500 after the Redevelopment Agency decided to forgive the nearly $15,000 the company owed in Harvey House rent. According to RDA Manager Ron Rector, the rent was forgiven during an agency meeting in March.

That has implications for Alameda, because SunCal is working closely with Alameda’s redevelopment agency and may ultimately find itself entangled in similar financial arrangements, with the potential for Alameda to be on the hook for SunCal’s failure. We understand that SunCal is leasing space at Alameda Point from the Alameda Re-use and Redevelopment Agency (ARRA), similar to how SunCal rented Harvey House from Barstow.

3 comments to Revitalize Alameda Point – SunCal Closes Waterman Junction Center in Barstow

  • barb

    All “SUNCALs” are not alike. There is undoubtedly a new incarnation of a “SUNCAL” for every development “SUNCAL” undertakes since it first started going into bankruptcy court for the 27 projects thus far. The problem for Alameda’s “SUNCAL”, is that it has already transfered its interest in Alameda Point by the Oct. 7, 2008 secret agreement entered into behind closed doors by our City Council. So only our City Council, City Attorney and City staff, know what the insides of Alameda’s incarnation of SUNCAL’s pockets look like. One would hope that with the uncertainties in today’s economy and financial straits of our CITY requiring layoffs and reductions in some services, that Alameda’s officials had enough sense to get cash up front from our incantation of “SUNCAL” in case our “SUNCAL” disappears in smoke up the chimney.

  • Legally, they are different entities. But all the entities are managed under the same corporate management structure and business model. Our point was that if the business model is failing in Barstow, or San Juan Capistrano, perhaps it’s likely to fail in Alameda as well. SunCal does these deals on a highly leveraged basis, which means a lot of risk.

  • Detailer

    To the Commenters:

    By George, you’ve got it!

    Also, for an interesting take on what happens when a major local developer files bankruptcy, wriggles its way out of paying all of its local bills, stiffs its major equity investor, and then pays a pittance to buy back an interest in the project and a very lucrative management contract, see:

    http://www.the-signal.com/news/article/15905/

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