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Media Coverage
Terminal One To Be Site Of Luxury Houses
June 18, 1998



Thursday, June 18, 1998
Section: News
Page: A03
Cadonna Peyton

An industrial area on the city's south shore will be developed with homes and townhomes, the council decided Tuesday.

But whether the Port of Richmond's Terminal One site will include businesses still must be hammered out.

The City Council unanimously agreed that Shea Homes would be the company to redevelop the site, a 14-acre former tank farm.

Council members rated the four developers that made offers and Shea, a San Jose-based development company, came away with the highest ratings. However, there was still concern among some council members about what type of development it will be. The design will be discussed over the next couple of weeks.

Shea Homes originally proposed to build 192 units: 40 luxury homes on San Francisco Bay and 152 townhomes. A recreation center, pool and spa would be included. Homes in similar Shea developments sell for $283,000 to $382,000.

No commercial development was included in the Shea plan, which concerns Councilman Nathaniel Bates.

The area needs some businesses, Bates said. His ideas include shops and a restaurant along the bay. "I've come to the conclusion I'm not going to support the project unless there is a restaurant included," he said.

Councilman Tom Butt said he is an advocate of mixed developments but doesn't believe the Terminal One site is big enough to support any significant businesses.

"This is basically going to be a residential neighborhood, and I'm OK with that," he said.

Councilwoman Donna Powers said she liked the fact that company representatives guaranteed the city will be protected from any litigation for toxic materials.

The site, which has 62 storage tanks and eight buildings, including a 94,000-square-foot dock warehouse, is contaminated.

"In the future, if there is anything found on that property, the city is not responsible," Powers said. "We won't be held liable."

Shea Homes offered $6.5 million for the property and agreed to pay up to $1 million for environmental testing and cleanup.

Owned by the city and the port, Terminal One is one of the last remaining industrial sites in the south shore area. The project is another step in the effort to boost Richmond's image and its ability to attract businesses.

The site, which features panoramic views of the Richmond-San Rafael, Golden Gate and Bay bridges, is prime for development.

The other developing companies that were interested in the property were Olson Co., Pacific Valley Housing Corp. and Security Capital Pacific Trust.

Most members are optimistic about their decision and believe Shea Homes was the best choice.

"Shea Homes can handle everything," Powers said. "They have an outstanding track record and they are going to bring a first-class development to that property."