Treasure Island developer
not required to meet schedule

Photo(s) by Luke Thomas

By Pat Murphy

Copyright fogcityjournal.com 2005

October 5, 2005

Recent contract extension for Treasure Island development has no teeth to enforce its rationale, Treasure Island Development Authority (TIDA) executive director Tony Hall said yesterday.

Although city officials publicly framed the extension as means to pressure the developer to produce an essential document by next June, the extended contract locks in developer right to delay in producing that document through June, 2008, Hall told the Sentinel.

The all-important document -- known as a "term sheet" -- is required by the U.S. Navy before it will deed the island to San Francisco.

On recommendation of the Newsom administration, the extended developer contract schedules term sheet delivery in June, 2006.

Yet the contract doesn't require that schedule be met, Hall asserted.

He pointed to a contract addendum as making schedule deadlines unenforceable.

"In the event of any inconsistency between this Schedule and the Agreement, the Agreement shall prevail," the addendum codifies.

The agreement, approved September 21 by the TIDA board of directors, extends exclusive negotiating rights to the developer through June, 2008.

Although named exclusive development negotiator under the Willie Brown administration, the Treasure Island Community Development Corporation (TICD) set and missed schedules for producing a term sheet.

At the time Hall became TIDA executive director, on August 11, 2004, TICD production of a term sheet was scheduled for February, 2005.

However, TICD subsequently revised term sheet delivery to July, 2005, and then revised that schedule further to November, 2005.

Frustrated he had no term sheet in hand since August, 2004, Hall urged TIDA board members to adopt stronger requirements of the developer at its September 21 meeting.

Some 30 minutes before that meeting, Hall received a fax from City Controller Ed Harrington alleging Hall established bank accounts not formatted for full city administration review.

Hall disputed that allegation, and claimed it was timed to draw attention away from Hall's criticism of TICD.

TIDA board members approved the extended TICD contract on September 21, which eliminated Hall from the contract approval process.

On Monday, Mayor Newsom told the Sentinel that he "isn't interested" in meeting with Hall.

Hall will continue to make his voice heard, he said.

"They hoodwinked me. I give up a seat on the Board of Supervisors - sure to be re-elected, top fundraiser in the city - and give it up for something I believe in, and then they turn around and pull the rug out from under me," Hall said of the Newsom administration.

Perhaps without a rug to stand on, Hall yesterday went on to use his voice suggesting a portion of TICD planned funding is farcical.

TICD funding calls for bonds sold tied to value of existing structures on Treasure Island, Hall stated.

"They're falling apart. They won't be here in five years. They'll fall down."

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