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Alameda to Settle With SunCal for $4.25 million

SCC Alameda Point versus City of Alameda

The City of Alameda is settling lawsuits with SunCal for $4.25 million.

Late today, the City of Alameda announced that the city and SunCal have agreed to a $4.25 million settlement to resolve lawsuits that SunCal filed over Alameda Point.

The settlement was approved by a 4 to 0 vote by Alameda City Council at a special meeting on Tuesday evening.

Under the agreement, the City of Alameda will make payments to SunCal over the next 18 months totaling $3.177 million, and the City of Alameda will return SunCal’s initial deposit of $1.073 million, which the developer paid to the city more than five years ago, when first selected as the master developer for Alameda Point.

In a statement, City Attorney Janet Kern said that the cost of defending the case continues to rise and is expected to exceed the $4.25 million settlement figure, even if the city ultimately wins.

Kern said that pre-trial discovery was expected to run to the end of next year.

The City of Alameda won court victories in the case twice earlier this year, reducing SunCal’s claims from $117 million to just the initial deposit, plus interest.

However, the amount could rise again, the city said, should SunCal succeed in reversing past decisions upon appeal.

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