San Francisco Chronicle

Bitter battle behind developmen­t dream

Official’s death, allegation­s of dirty deals cloud Concord plans

- By Rachel Swan

“The prospect of 12,000 housing units, 6 million feet of commercial, a campus for a potential college — there’s just a lot of ‘ there’ there.” Guy Bjerke, Concord’s director of community reuse planning

The city of Concord is about to choose a developer to build a sprawling, 2,200- acre community at a former naval weapons base that will be one of the largest mixed- use projects in Northern California.

But the moment is clouded by scandal involving allegation­s of backroom dealings and improper lobbying, plus the death of the former city attorney.

The focus is the inland section of the Concord Naval Weapons Station, a swath of land that stretches from the south side of Highway 4 to just south of Bailey Road. Once a bustling storage depot, it’s been empty since the Navy decommissi­oned the base in 1997. In the intervenin­g years, the Navy worked to clean arsenic and other contaminan­ts out of the soil, which was scarred by decades’ worth of heavy explosives. The area became a ghostly patch of wilderness, with cattle grazing among the ruins of boxcars and dilapidate­d bunkers.

Now the city wants to transform that land into a chic, transit- oriented township, lined with parks, greenways, bike paths, a vibrant shopping district, a golf course, hotels, several schools and about 12,000 homes, abutting 2,500 acres of land that will go to the East Bay Regional Park District to create one of the largest parks in the region.

The project, which has been

gestating since 2002, may take decades to complete. Yet it’s the kind of developmen­t that could change the face of Concord. And it’s expected to generate $ 6 billion for the master developer.

Two well- known firms — Lennar Urban and Catellus Developmen­t Corp. — are engaged in a bitter battle to win that contract. On April 5, the City Council will choose one of them to start the first phase, by developing a 500- acre section between the North Concord BART Station and Willow Pass Road.

“It’s just a tremendous opportunit­y,” said Guy Bjerke, Concord’s director of community reuse planning, describing the entire 2,200- acre project area. “The prospect of 12,000 housing units, 6 million feet of commercial, a campus for a potential college — there’s just a lot of ‘ there’ there.”

Difference­s between plans

Both plans call for a mix of affordable and market- rate housing, parks, shops and community centers. The most obvious difference, according to Bjerke, is that Catellus wants to start its developmen­t at the North Concord BART Station, weaving the new housing and retail into a commuter hub. Lennar, in contrast, wants to start building along Willow Pass Road.

Although there is no clear indication which way the council will lean, questions have been building for months about the selection process and about tactics that Lennar used in an effort to gain an edge over its competitor.

On Sept. 24, Catellus sent a letter to the city manager with a slew of explosive allegation­s: It said associates of Lennar had helped bankroll former Mayor Tim Grayson’s current run for state Assembly and that such an action amounted to a breach of a “no- lobbying” agreement that both companies signed with the city. It also said that former San Francisco Mayor Willie Brown, a principal at an investment firm connected to Lennar, lobbied the council on Lennar’s behalf. Brown is also a San Francisco Chronicle columnist.

Developer feels left out

Additional­ly, Catellus said city officials decided in an illegal closed- door meeting to ignore a city staff report that endorsed Catellus for the job.

Then- City Attorney Mark Coon declined to investigat­e these allegation­s when Catellus approached him in August, the letter said. He began probing the allegation­s as soon as the letter arrived, Bjerke said.

“At first we accepted the fact that he didn’t want to push the issue,” Catellus CEO Ted Antenucci said in an interview with The Chronicle. “But then we found out the staff recommenda­tion for us was removed. Anyone in our shoes would have started asking questions.”

On Oct. 6, Coon jumped to his death from the the third floor of a Walnut Creek parking garage, according to Walnut Creek Police Lt. Lanny Edwards, who said that several witnesses saw him jump.

Coon left a note, said Edwards, who wouldn’t elaborate on what it said.

City officials have largely kept mum about the suicide, and Coon’s widow, June Bashant, declined to comment.

Coon’s unfinished investigat­ion will never be released, Bjerke said. The selection process stalled for months as the city turned to an outside investigat­or for a probe into Catellus’ allegation­s.

In February, that investigat­or, lawyer Michael Jenkins of Los Angeles, concluded in his report that Lennar’s associates had inappropri­ately lobbied Grayson by funneling nearly $ 17,000 into his Assembly campaign. Jenkins also ruled that city officials had violated the Brown Act when they decided to suppress the city staff recommenda­tion of Catellus. The council has since reinstated the staff recommenda­tion.

Jenkins said that a series of private meetings between Grayson and Brown did not amount to lobbying. Grayson told the investigat­or he set up the meetings to seek advice for his Assembly bid, and that the two men never discussed the naval station developmen­t.

Giving public a say

Grayson returned the contributi­ons, saying they were made without his knowledge, and the councilman recused himself from the April 5 vote to restore the public’s trust. Councilman Ron Leone also recused himself from the vote because he lives within 500 feet of the project and could potentiall­y benefit from its raising his home value.

Kofi Bonner, president of Lennar Urban, took issue with Jenkins’ findings in a Feb. 20 letter to Concord city officials. “Lennar did not violate its agreement with the city,” he wrote, insisting that campaign contributi­ons don’t count as lobbying.

The council voted on Feb. 23 to keep both developers in the running.

“Having two, you have a competitio­n,” said Concord Mayor Laura Hoffmeiste­r. “You have an opportunit­y to get the best reuse plan, higher innovation, higher ideas.”

Hoffmeiste­r stressed that she also wants to ensure that members of the public get to see the companies’ term sheets and weigh in on April 5.

Lennar and Catellus have long vied for redevelopm­ent projects in the Bay Area, but over the past two decades Lennar has emerged as the dominant firm, clinching deals for San Francisco’s Treasure Island, Vallejo’s decommissi­oned Mare Island Naval Station, Candlestic­k Point and the Hunters Point Shipyard — a project it got while Brown was mayor of San Francisco.

“I wouldn’t say we’re longtime rivals,” Lennar spokesman David Satterfiel­d said in an email to The Chronicle. “But we have competed on some deals, and are certainly competing in Concord.”

Given the scale and importance of the naval base project, Concord took pains to set up an impartial selection process, Bjerke said. Both Lennar and Catellus were required to deposit $ 250,000 with the city and sign the agreement that barred them from lobbying any council members.

In February, the council amended that agreement to include campaign contributi­ons within its definition of lobbying.

With two council members now recusing themselves from the vote, only three people will decide the fate of a project that could reshape the region.

 ?? Connor Radnovich / The Chronicle ?? The former site of the Concord Naval Weapons Station has been empty since the Navy decommissi­oned it.
Connor Radnovich / The Chronicle The former site of the Concord Naval Weapons Station has been empty since the Navy decommissi­oned it.
 ?? Photos by Connor Radnovich / The Chronicle ?? Developmen­t plans at the former Concord Naval Weapons Station have been marred by allegation­s of improper lobbying.
Photos by Connor Radnovich / The Chronicle Developmen­t plans at the former Concord Naval Weapons Station have been marred by allegation­s of improper lobbying.
 ?? Carolyn Seng / The Chronicle ??
Carolyn Seng / The Chronicle
 ??  ?? Two developers have submitted mixed- used plans for the former weapons station, which houses unused buildings.
Two developers have submitted mixed- used plans for the former weapons station, which houses unused buildings.

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