Alameda city officials seem to be exploring their own version of the Orange County "Great Park" for Alameda Point. What a great idea - if it was economically feasible.
I've seen developers come and go out on Alameda Point, and the city should not ignore this track record. Let's look at why the previous plans didn't work. One of the key issues is financing. How will Alameda afford a Great Park without the economic engine to support it?
The Orange County Register reports that Great Park leaders (a board comprised of city leadership and community members at-large) signed off on an $82.7 million budget for the upcoming fiscal year.
So where is this money coming from? The short explanation is taxes and the small amount of revenue the Great Park generates ($4.8 million is budgeted).
But the real Great Park cash cow is Lennar Development Corp. In 2005, Lennar deposited $200 million in the Great Park fund.
This money will run out, and Orange County will be left with an annual bill of $82.7 million.
Is this something that Alameda's General Fund can support?
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The short answer is "No."
ReplyDeleteLauren Do's "Blogging Bayport Alameda" at laurendo.wordpress.com/2009/11/23/southern-california-comfort/ provides some great (and worrying) background info on Orange County's Great Park.