Vallejo City Council to get update on North Mare Island land deal

VALLEJO - The Vallejo City Council will receive an update during a closed session set for Tuesday about a proposed land deal that has faced recent criticism over the lack of transparency surrounding the project.

Interim City Manager Anne Cardwell, interim Assistant City Manager Gillian Hayes, and Paul Kelley, special advisor to the city manager for economic development, are scheduled to present information to the council about current negotiations with The Nimitz Group regarding the possible purchase of 157 acres of land on North Mare Island.

The project has come under increased scrutiny following reports that former City Manager Greg Nyhoff met with officials from The Nimitz Group and Southern Land Group in late 2019. Nyhoff was accused of working to remove certain benchmarks from an October 2019 term sheet, weakening the city’s position in the deal. The council eventually approved a new term sheet last December, which would have the city sell the 157 acres to Nimitz for just $3 million.

That number pales in comparison to the $58.4 million paid by two Nevada developers earlier this year for 59-acres of land owned by the U.S. Coast Guard in the city of Concord. The land was sold at auction with the minimum bid starting at $15 million.

The initial term sheet provided the city an opportunity to cancel Nimitz’s lease and reacquire the land should it fail to meet performance goals. The new term sheet allows the city to buy back the land should the Nimitz Group fail to meet certain performance goals.

Also before the council in closed session, Hayes and Kelley will provide an update on the negotiations for the sale of several parcels of land on the Northern water front.

Developer Joe Callahan has proposed to build more than 170 homes, plus three commercial buildings, on the empty lot near the entrance to Mare Island.

Late last year, the council terminated a fifth amendment to the disposition and development agreement with Callahan Property Company for the central waterfront. Callahan hadn’t reached any of the deadlines in the agreement for two decades.

Finally, the council will get information about two anticipated lawsuits expected to be filed against the city of Vallejo.

The Vallejo City Council will meet at 4:15 p.m. Tuesday via teleconference.