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VALLEJO, CA – The City of Vallejo has made the draft North Mare Island Disposition and Development Agreement available to the public for review.
The draft North Mare Island (NMI) Disposition and Development Agreement (DDA) is a purchase and sale agreement through which, if approved, the City will transfer/sell NMI to The Nimitz Group (Nimitz).
The DDA is a culmination of years of work, beginning in late 2017 with a thorough request for proposal process where Nimitz was selected as the most qualified developer for the site. In mid-2018, the City entered into an Exclusive Right to Negotiate Agreement (ENA) with Nimitz regarding the NMI property.
The draft DDA includes the following key terms:
- Nimitz acquisition of NMI.
- Demolition of remaining 10 NMI Non-Utilized buildings at Nimitz’ cost and expense.
- Preparation and implementation of an interim Beautification Plan by Nimitz.
- Construction of Connolly Corridor Development on South Island to include a hotel, retail, residential and recreational open space within 60 months following Closing of the Initial conveyance.
- Prohibition of construction on NMI of any liquefied natural gas facilities, cement batch plants, dumps and heavy recycling facilities, refineries, heavy industrial uses, and cannabis cultivation and dispensary facilities prior to consideration of a new Specific Plan which could exclude these uses into the future.
- Preparation and submittal of a proposed New Specific Plan for the entirety of Mare Island that will include a plan for phased installation and construction of new Backbone Infrastructure.
- Provides for a local community benefits program including local business and hiring practices.
- Nimitz commitment to cooperate in the formation of new Community Facilities District(s) (CFD) to replace one or more of the existing CFDs on the Island.
- Provision requiring Nimitz to pay City and Vallejo Unified School District (VUSD), beginning 5 years after DDA, the difference between property taxes received and the taxes that the City and VUSD would have received if buildings and improvements with an assessed valuation of $26M (2020/21 dollars) had been developed on Nimitz-owned property.
- Requirements for Nimitz to maintain roadways on NMI and to reimburse the City of Vallejo and the Vallejo Flood and Wastewater District for ongoing repair and maintenance costs of their respective utility facilities on NMI until construction of new facilities.
Under the DDA terms, the initial conveyance (transfer) will be for the approximately 125 acres currently owned by the City of Vallejo and Nimitz will sublease the Navy’s remaining approximately 32 acres of NMI. As the Navy transfers their property to the City, Nimitz will accept ownership as part of the DDA obligations.
On March 22, 2022, the completed DDA will be presented to City Council for consideration and possible approval at the regular City Council meeting.
The DDA along with more information and related documents can be found by visiting www.myvallejo.com/NorthMareIsland or by clicking here, to allow the public time to review the document before the Council meeting.
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