Mar 4, 2008

Clif Bar withdraws from project

By Alan Lopez / MediaNews

Clif Bar, the much-heralded Berkeley-based organic energy snack manufacturer planned as the anchor tenant of the 77-acre Alameda Landing commercial and housing development, has withdrawn from the project.

The vice president for Catellus Development Group in Northern California, developer of the Alameda Landing project, said the reason is that Catellus has not been able to commit to a date when Clif Bar could move into Alameda as part of the first phase of the Alameda Landing development.

As a result, Clif Bar chose to terminate a letter of intent that had been signed by both parties as prerequisite to a lease. Clif Bar, which notified the city on Wednesday of the decision, will explore other options in the Bay Area, said Aidan Barry, vice president of Catellus in Northern California.

"We remain interested in working with Clif Bar, and look forward to discussing further solutions with them at the site," Barry said in a statement. "We also appreciate the support we continue to receive from the city and the community, and remain committed to the Alameda Landing project and the city of Alameda."

Catellus received approvals for its Alameda Landing development, located at the former Fleet Industrial Supply Center at Alameda Point, in December 2006. As part of the plan, Catellus had been negotiating a lease for a new corporate headquarters inside an old warehouse with Clif Bar.

The city's planning board enthusiastically approved the headquarters in May. The plan called for rooftop solar panels, indoor gardens, a gymnasium offering yoga classes and massages, and a "Clif Bar and Grill" restaurant.

Part of the problem is that the headquarters would be located on top of more than 7,000 corroded pilings holding up the wharf. While a new design was created to work around the problems and then approved for the area, it pushed back the construction of the overall development by six months.

Neither a media relations person nor an attorney for Clif Bar returned calls seeking comment.



Ramifications

With Clif Bar potentially out of the picture, it could further change the plans for that area, Mayor Beverly Johnson said.

"I'm not sure it would make economic sense for Catellus to spend that money on the pier and the reuse of the building if Clif Bar is not going to go in," she said.

"I think there's the possibility that we might lose the historic waterfront, the buildings there, that were originally slated to be demolished," she added. "Clif Bar came in and gave us the opportunity at reusing that."

Johnson called it a "shame" to lose Clif Bar. However, she noted that Alameda Landing, located along the Estuary across from Jack London Square, eventually will uplift a blighted area, a view shared by many.

"It's a really rare opportunity for waterfront development in the Bay Area," she said. "There aren't that many opportunities left and certainly not in Alameda. It will be a great project in the end."

The first phase of the Alameda Landing development included not only Clif Bar but about 100,000 square feet of retail and 100 new homes.

"When Clif Bar looked for a new location, they had a pretty aggressive schedule and were interested in being in the new headquarters I believe initially in the spring of '09," base reuse manager Debbie Potter said. "I think over time, Catellus is committing to delivery (with the first phase) in the fall of '09."

Alameda Landing's second phase includes 200,000 square feet of retail and up to an additional 200 homes. The third phase consists of 250,000 square feet of office space.



The market an issue

The timing of the remaining two phases will depend largely on market conditions, but Catellus is bound by its contract with the city to have the entire development completed by 2016.

When the project will move forward, however, remains in question. The removal of hazardous materials at an abandoned naval hospital, tentatively scheduled to begin in February, now does not have a confirmed start date, Barry said.

The hospital needs to be demolished to begin the roadway improvements necessary there - specifically the extension of Mitchell Avenue west from Webster Street.