This week news broke from Albuquerque, New Mexico, that SunCal’s partnership with DE Shaw on a massive land development project there has filed for bankruptcy. SunCal has also indicated they intend to keep negotiating with the City of Alameda over Alameda Point.
Bankruptcy court documents show that the Board of Directors of Westland HoldCo, Inc., the managing general partner of Westland DevCo, LP, the partnership between DE Shaw and SunCal, resolved on December 23, 2009, to initiate Chapter 11 bankruptcy proceedings for the partnership, even as SunCal campaigned for Measure B here in Alameda. Court records show that DE Shaw owns 92.5% of the partnership, and SunCal 7.5% and that the partnership’s estimated debts are between $100 million and $500 million.
SunCal had not responded to a request for comment by press time.
Last night, Alameda City Council was scheduled to have an update from City staff on negotiations with SunCal. In the City Council packet was a one page summary of recent events, including an item reading, in part, “SunCal indicated it intends to negotiation a DDA/DA provision that provides the Master Developer an option to apply for a density bonus that will permit the land uses, units and density similar to the Calthorpe Plan contained in Measure B.”
The summary also indicated they need more time to review SunCal’s alternative plan for Alameda Point, that could potentially provide for over 5,000 homes at Alameda Point, with a density bonus.