Concord may finally move ahead with a plan to build one of the Bay Area’s biggest housing projects at the former Concord Naval Weapons Station. Brookfield Properties has reached an agreement with the Navy to redevelop the property.
Paul Chinn/S.F. Chronicle
After years of delays and failed attempts, Concord could finally move ahead with a plan to build one of the Bay Area’s biggest housing projects on a former naval station.
The Concord City Council will decide Tuesday whether to approve a financial agreement with the Navy that would allow a developer to build a $6 billion residential community that would include 12,272 homes — 25% of which would be affordable — more than 800 acres of parks and 6 million square feet of commercial space.
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If approved, the developer, Brookfield Properties, would pay the Navy, which owns the 2,225-acre Concord Naval Weapons Station, $628 million over nearly 30 years.
Tuesday’s vote comes after two negotiations to move ahead with development of the station fell apart amid labor disputes and political pressure, but city officials say this time is different.
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“In all this time we have never had an agreement with the Navy,” said Guy Bjerke, the city’s economic development director. “That’s the key highlight here. It will allow Brookfield and staff to move forward with the specific plan and get things going.”
The project has mostly remained unchanged from previous attempts. The key difference is that the city, developer and Navy have all come to an agreement, Bjerke said.
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Concord Mayor Laura Nakamura expressed optimism about the development and Brookfield’s efforts.
“Despite the fact that redevelopment of the former Naval Weapons Station has never been simple, and no one should pretend otherwise, reaching an agreement with the Navy on the terms of transfer is a major step forward,” she said in a statement.
The proposal comes as the city continues to make significant changes to its zoning rules amid pressure from the state to address the housing crisis. In March, the City Council approved zoning changes to allow for denser housing in some single-family neighborhoods and commercial corridors.
If the naval weapons station is fully built out, it would dramatically change the city as it adds schools, two fire stations and thousands of potentially new residents. But with the rise of construction costs, there is no guarantee that the project will ever be completed.
Efforts to redevelop the station, which has been vacant since the late 1990s when it was used for weapons storage, have been years in the making.
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In 2020, Lennar and FivePoint, the city’s selected developers, walked away from the project after they failed to come to terms with the Contra Costa County Building Trades Council. The unions demanded a labor agreement to cover the entire project, which the developer said would increase costs by more than $500 million.
In 2023, the City Council rejected a term sheet with Concord First Partners, effectively firing the developer it had selected two years earlier to bring the project to fruition. Brookfield was the city’s second choice in 2023 and the two sides came to an agreement in 2024. Brookfield did not return a request for comment.
Even if the council approves the deal Tuesday, the project won’t break ground for years. Tuesday’s vote would allow the developer to move ahead with applying for permits and entitlements for the reuse project.
The development, outlined in the deal, is a five-phase buildout over the next 30 or so years. The first phase, which includes 1,696 market-rate units and 562 affordable units, would likely break ground in 2030.
If approved, Brookfield would pay a $4.6 million deposit to the Navy at the close of the property transfer in 2030. Starting in 2033, Brookfield would pay an annual $10 million fee plus interest to the Navy for four years. The developer would also pay gross land payments of 10% from land transfers in the fourth phase and 12% from the land transfers in the fifth phase. In addition, the Navy would receive a cut of the city’s profit-sharing proceeds if Brookfield’s returns exceed a certain threshold.
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Bjerke said he’s optimistic about the vote.
“Almost all the major stakeholders are in favor,” Bjerke said.
In addition to affordable housing and parks, Brookfield has entered into labor agreements with the building trades and carpenters union for them to build almost the entire project.
Tim Sbranti, the president of the Contra Costa Building and Construction Trades Council, said his group is pleased with the agreement with Brookfield.
“As it relates to any of the things of the past, we are only just looking forward,” Sbranti said. “We are happy with what we have now. We are looking forward to working with Brookfield.”
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The City Council will also vote on an updated term sheet with Brookfield that aligns with the Navy’s agreement, Bjerke said. That agreement between the city and Brookfield now includes a December 2029 deadline for Brookfield to get all of its entitlements for the project.
The Navy also has to approve the term sheet, but Bjerke said he’s confident that will happen in the next month.
“We are doing this at the same time, we’re waiting to hear the Navy has approved it and the Navy is waiting to hear we’ve approved it… and then we’ll execute,” Bjerke said.