Previous posts about Howard Terminal:
Later today the Port of Oakland’s Board of Port Commissioners will hold a meeting, during which an important settlement with SSA Marine will be discussed. This settlement is important as it should resolve the biggest legal obstacle hanging over Howard Terminal. The settlement discussion is a closed session item, so the terms weren’t made publicly available. Still, there’s no reason to think that the terms won’t be approved as the parties apparently have been in discussion for some time, and would probably prefer to avoid further litigation (which could run through next year).
During the Don Knauss interview, he mentioned that environmental concerns were overblown. To wit:
We’ve done the diligence there as well and been assured by experts that a ballpark can be built on that site without a substantial cost associated with cleanup. Basically we can build a ballpark on top of that site without having to scrape the site clean like AT&T was built on (China Basin).
Wait a minute. China Basin was built without having to scrape it clean? Actually, it was scraped clean. Site remediation was done by the Giants, not the City or Port, and reimbursed to some degree by the federal government via the Federal Brownfields Tax Initiative. Piles were driven deep into bay mud (fill) to provide a proper foundation. Knauss is suggesting that a Howard Terminal ballpark can be built without replacing the fill currently at the site or even piercing the asphalt cap designed to contain the site’s contamination. I’ve heard this claim before but not the plan behind it. Naturally I have to be skeptical of this claim. China Basin and Howard Terminal are similar enough that it’s hard to conceive of how this would work.
AT&T Park’s foundation was built the many expected: land was cleared, cleaned up, and piles were driven to support the stands and ancillary buildings. This was required because China Basin sits in an extreme liquefaction zone. Howard Terminal also sits in an extreme liquefaction zone, which would presumably mean similar measures to China Basin would have to be undertaken. The difference with Howard Terminal is that the State of California put the asphalt cap over the contamination over a decade ago instead of cleaning it up completely, a process which would’ve cost $100 million ($131 million in 2012). That cost has long been the biggest source of the site costs associated with Howard Terminal.
Then again, maybe Knauss and the Oakland backers have a clever, innovative plan that would not require piercing the asphalt cap, or at least minimizing the number of intrusions. That would probably require building a smaller number of larger sized footings at the site, then constructing an above grade podium on which the ballpark would be placed. If that sounds familiar, it’s because Bryan Grunwald proposed a similar approach at his 980 Park site. There’s no concrete estimate of the cost of such a podium, but I’d expect it to be at least $100 million given the the size and load it would have to carry. That could conceivably be cheaper than cleaning up Howard Terminal. Would it be that much cheaper? We’re talking about building a ballpark in a liquefaction zone. There’s no room to cut corners.
Another issue is the amount of planned infrastructure. Again, Knauss claims that costs are being overblown. But he also acknowledged that parking would need to be provided on site, which makes sense given the lack of parking in the immediate area (only 1,200 spaces within 1/3 mile). And if more parking is to be provided on the 50-acre Howard Terminal site, more infrastructure has to be built to bring cars into the site. I had previously suggested two overpasses, one for vehicle traffic and one for pedestrians. Add those to the podium, other site improvements, and additional improvements to the area north of HT, and we’re talking about an estimate north of $150 million. Maybe it’s less, maybe they’ve come up with something really innovative. The problem is that quality engineering is expensive and requires expensive materials. Heck, even bad engineering can be really expensive.
Finally, there’s the lingering question of Who will pay for it? The Giants paid for their site cleanup, got a tax credit from the Feds, and received a minimal amount of TIF funds for the surrounding area. If Knauss is suggesting the same kind of deal to Lew Wolff, it’s a nonstarter. That’s around $650 million worth of risk, 95% of it to be borne by the A’s, with little promise of the kinds of returns the Giants got at China Basin. (Note: Walter Shorenstein thought China Basin was so risky that he divested his share of the Giants, and many within The Lodge looked askance at the plan.)
Maybe, just maybe, Knauss and his people have this figured out. Maybe there’s a creative way to make this all work for everyone. Again, I’m skeptical. Many of the same claims were made about Victory Court, and that site was swept under the rug with barely a peep.
P.S. – We haven’t even touched the transportation gap at Howard Terminal (BART or the mythical streetcar). Or whether the City, Port, and County would create yet another joint powers authority. Or lease terms. Or the lack of redevelopment funds for surrounding area improvements.