Treasure Island Redevelopment Ideas Unsure as Bay Region Serious Estate Organizations Sue Each individual Other

In 2001, Kenwood entered an arrangement with true estate corporation Lennar Urban to redevelop Treasure Island, a 400-acre island located concerning the East Bay and San Francisco. Kenwood and Lennar held a 50% interest in the Treasure Island Neighborhood Progress (TICD) job, the Kenwood grievance reads.

Four many years later on, Stockbridge and Wilson Meany joined Kenwood as associates, and the teams formed a business termed KSWM Treasure Island. As aspect of that partnership, Kenwood promises it transferred its 50% share to the KSWM team.

A housing structure is seen being built on an island with a view of a silver bridge in the background.
A composition sits on the h2o off Treasure Island, throughout from the Bay Bridge. (Sara Bloomberg/KQED)

Then in 2016, a separate investor and affiliate of Stockbridge, Stockbridge TI, joined TICD. As a consequence, KSWM and Stockbridge TI then shared the 50% fascination. Kenwood statements in its lawsuit that Wilson Meany and Stockbridge “never asked for Kenwood’s consent to this amendment and Kenwood did not concur to this modification.”

Kenwood is now alleging that by letting Stockbridge TI to spend right into TICD, the partners “diluted” the 50% share for KSWM. Stockbridge and Wilson Meany deny both of those statements.

In their primary complaint, Stockbridge and Wilson Meany assert that the projected values of KSWM’s passions are “much lower these days than they have been a couple of yrs in the past, just before the COVID pandemic and financial shocks that arrived in its wake, and prior to unanticipated price tag boosts and delays pushed out the decreased projected revenues by various years, all of which have frustrated envisioned returns,” the doc reads. “Because of these setbacks, none of KSWM’s users can look forward to the money rewards they experienced hoped for when this venture started out in the early 2000s.”

Cranes and other building equipment are seen parked on wet ground. Trees and powerlines are also pictured in the background under gray skies.
Bulldozers and other design equipment are locked absent on Treasure Island on Friday, Feb. 8, 2019. (Lindsey Moore/KQED)

Treasure Island represents both of those a significant option and challenge for builders. In contrast to quite a few pieces of the metropolis, the former naval foundation has incredible room for new developments and housing, which is sorely wanted to handle the region’s housing crunch. But the former military internet site has a historical past noticed with environmental lawsuits, permitting hurdles and other barriers.

The most modern project to split floor was Star Check out Court, a 138-unit progress that features 71 models for previously unhoused families transitioning out of interim supportive housing, 43 models for lower-income households, and 23 homes for existing Treasure Island people.