With the lead developer for the Concord Naval Weapon Station re-use project at an impasse with a labor consortium over construction agreements, the Concord City Council will soon have to decide whether that developer is living up to terms to have those agreements in place.
At its Jan. 7 meeting, the City Council is scheduled to address this impasse between the Contra Costa County Building and Construction Trades Council and Lennar Concord, LLC, the chosen lead developer of the project.
Both parties have told the city they are at an impasse; one area of disagreement is whether the use of labor unions would be economically workable for Lennar.
Among items addressed in the labor agreements would be local hiring requirements and vocational training and incentive programs for military veterans, as proposed by the Building Trades Council.
In late 2019, after the Building Trades Council indicated no progress was being made with Lennar on the labor agreements, former Mayor Edi Birsan created a committee to encourage the two parties to come together. The two sides have met nine times since June 2018, the last two times with the committee present.
The committee asked the City Council to step in and decide whether or not Lennar’s efforts to secure the labor agreements meet the city’s agreed-to terms.
If the council finds Lennar’s efforts haven’t been enough to meet those terms, Lennar could have to “relinquish their role as master developer for Phase 1” of the reuse project, according to a city report.
The Navy is awaiting a resolution of the project labor agreement issue, and progress on a draft specific plan on the former weapons station land, to resume negotiations with the city of Concord for formal transfer of the land to the city.
After most of the former Concord Naval Weapons Station was closed by the U.S. Navy in 2005, the city and various other interests spent the next seven years discussing how the property should be developed. The Concord Community Reuse Project Area Plan was adopted in 2012, calling for residential, commercial and educational development on approximately 2,300 acres of the old weapons station land on the northwest edge of the city of Concord.
The Jan. 7 Concord City Council meeting begins at 6:30 p.m. in the council chambers at 1950 Parkside Drive.
44 comments
The project should benefit the community and not just Lennar’s bottom line.
Absolutely. Lennar should honor the preliminary agreements to establish a PLA. If they are going to go back on something like this now, in what ways will they fail to deliver. I don’t see a good enough reason for the City to continue with company like this for the next 30 years. Lennar needs to get their act together ASAP or be dropped entirely. I hope the two city council-members up for re-election are listening.
What happened to the previous version of this topic?
The City commissioned their own expert financial analysis of Lennar’s bid and the experts came back and told the city that Lennar’s financial modeling was correct and if a project labor agreement was mandated, the deal would implode. The City of Concord also has an equity stake in the deal where they make money if profits go above 20%. If the Council votes to mandate a project labor agreement they are in effect voting to blow up the deal and go back 5 years to the beginning. They are also voting to take money out of their own pockets and put it into the pockets of the union bosses. But hey, gotta get re-elected right? and those union guys are very good at that!
Someone’s crying “wolf”. Don’t trust “the city” or their version of the finances. Don’t trust their hand-picked expert report. For sure, don’t trust Lennar. People, expect a repeat of Hunters Point lies, distortion, fraud and coverup when dealing with 5 Point. This is in no way about ‘union bosses’, it’s about workers. Local workers, as opposed to ones brought up from SoCal or from out of state.
What we don’t need here is more people, houses, traffic, impact on schools, crime, and so on. The entire area should be developed into park and open space. However, the greedy money grubbers and politicians will make sure that doesn’t happen.
Good thing there’s plenty of housing in the area. Otherwise, people might notice it’s been 15 years since the Navy closed the base. Nice work by all concerned!
There should not be one housing unit built there until we get rid of gridlock.
The city of Concord was in over their heads from the jump on this project. Lennar is shady at best, and will have no problem suing the city(as we have seen on other projects) should they be removed.
Leave the whole area alone. I’m sick and tired of cement. Not even a park which will invite homeless.
How many homeless people do you see living in East Bay Regional Parks now? I can’t recall ever seeing even one. So I’m going to have to disagree with your premise that parks mean more homeless people.
The East Bay Regional Park Trail “The Iron Horse Trail” has homeless encampments all the way from Highway 4 to Walnut Creek.
@Bob – there are some camps along that stretch but not continuous. There is (counting north to south): 1: large camp under Marina Drive, some people camped in the riverbed, 2: camp under Concord Ave, 3: some under Willow Pass Road. Other than that not much until getting across Treat and the usual kids and families jam around Walden Park. Nothing too bad at all.
Wrong Bob. EBRPD is the only entity that cleans the bums off their property. Where you see the bums is on City, County and Caltrans property.
Here’s the problem. Big unions and big corporations. They fight over power and money and in the process, screw the workers and benefit the politicians, lawyers and themselves.
It would be nice to see a poll of the residents of Concord to see how many want any development. Doubt the garbage company and the POAs lackeys would allow that .
Some residents have spent 15 years trying to protect open space on the CNWS. We would love to see it all remain park/open space but soon realized that was not realistic. We have major homeless issues and a housing shortage, especially affordable housing. Of all of the prospective developers the city narrowed the choice down to, Lennar is the one who listened to our requests for open space/preservation and offered great community benefits such as parks/open space/trails, restoration of Mt. Diablo Creek, affordable housing, Steering Committee members of the CNWS Neighborhood Alliance interviewed all of the finalists and felt Lennar was the most capable to take on a project of this magnitude. We have been at this for 15 years! At some point the Navy could easily say “You can’t get it together, we will put the land on the auction block and any developer can bid on it.” Then it’s back to square one. I hope City Council does not blow this opportunity. They need to be reminded they represent the 129,000+ residents of Concord, not the Unions. They need to do what’s best for current and future Concord residents. Union workers and developers get to leave when they complete the work, Concord residents will have to live with and most likely continue to pay for this project through taxes.
@ KG – Not entirely true. Lennar promised open space for Dana Estates and Bishop Estates not the entire project. The other developers incorporated green space and could have been required to do more. The CNWS Neighborhood Community Alliance paired up with the labor unions and then shut out the president of the Sun Terrace Neighborhood Association. Not exactly an alliance.
Lennar didn’t finish the Mare Island project, which is also former-naval land. 500 acres of development is now being done by the Nimitz Group. Lennar, for some reason, has had problems delaying their small project (an apartment complex) in Lafayette.
It seems that with the Concord Reuse Project, Lennar bit off more than can chew and are in panic mode. To save face, if they have to back out, or renegotiate the contract with the city, they are trying to place blame on the unions.
Futher adding to the debate, there are politicians, investors and business people who are insisting that the Reuse property be the “Gateway to Silicon Valley” and be a elite tech hub. So instead of being a community for working class and moderately-middle class people, the Reuse Project with be an expensive tech enclave.
We currently have a number of people in this area commuting to the South Bay and San Francisco for tech jobs and tearing up the freeways doing so. Be nice and easier on the roads and environment if they didn’t have to do that. Plus a lot these “elite” companies need a lot of “working class” workers for support positions. Workers who don’t have to spend time for long commutes each day mean more time to spend at local shops and restaurants.
Seems like it will be yet another project killed by the demands for expensive union labor. It’s a shame because the Bay Area could use the housing.
Yeah, housing that no one can afford because they don’t have a union job. That’s no way to live.
LOCAL unions are made up of just that, local people who live in the community. Yes there can be travelers, people from other Locals, but only after the members in the community have a chance to take the job. Skilled labor from the community in which we live or labor that is not put through as much training that is from out of town….that’s the choice we have to make!
Again
The city council threw the land at Amazon for a new headquarters
So we see how interested the city is in holding up their side to keep lots of green area
This whole debacle is what you get when politicians hold the reigns on a multi billion dollar project
How do you expect political padawans to make decisions like this
A city manager is more the focus here
Yet the voters have allowed the city council to be entitled and have absolute power
Who ever agreed to those terms should get what they get
You can’t even absolve the council lol
So more shady deals and paid council campaign shells
This is all for show and only leads to what
Yep higher taxes
That’s all we get out of this windfall of land
Governed by democrat politicians with no one watching them steal everything they can
Wow blame your parents they wanted a council and gave them all this power
Now your screwed and so are your children
End is the land will never be cleaned properly
and what ever goes in will be tagged not inhabitable
Unless we pony up more tax money to clean it properly
And the council will have achieved
THE DOUBLE DIP
the crowning achievement of a democrat
Gratz
bah
with all this oh we need housing
we have plenty of housing
it is just being used by 18 million illegals who have been granted rental rights over American citizens by the state gov
why do you think they have steered state wide rent control
because they are using our money to pay for the illegals to live in all the low income apartments
rent control will allow them to bring in and house even more illegals with a fixed cost there by insuring democrats allowing this get their share with out any fluctuation
you voted for this …lol enjoy being fleeced both ways
too funny
people used to be smarter than politicians
entitlement has led to ruling over the voters
rather than serving
enjoy
As the saying goes: “Build it and they will come”.
Besides, the Democrats see it as a way increase their support base(mostly illegal aliens. criminals, welfare lifers and snowflakes who expect government to be their mommy).
As far as people once being smarter than politicians- people are now too busy watching reality tv, Facebook and their phones.
In 2018 Lennar made a profit of $1.7 Billion on revenues of $20.6 billion. At present they control over 250,000 home sites in the USA. You don’t get there by being a charity organization. In this case, it appears they are attempting to squeeze more profit from the Concord Naval Weapons Station deal. The Concord city council and their advisors are like little league kids trying to play ball against a major league team. Lennar’s attorneys are looking out for Lennar Corporation, not the city of Concord nor the citizens in this area.
DUMP Lennar while we still can, the project has had nothing but problems and nothing has even happened. Find a smaller developer that has local ties and might have more interest in this area and not just $$$$. Lennar seems to be as ethical as Seeno!
Good luck finding a small developer that’s not interested in a profit. Duh, what are you in business for… Plus a small developer could not afford the bond money and work comp insurance for a project this size.
Anybody know how many LOCAL union members are sitting around without any work? This might be a reason Lennar is backing away from a labor deal. Why back yourself into a corner where you can’t find anyone to hire…
The city and county governments took 7 years to come up with a plan. Now they have made no progress in implementing the plan and some idiots are concerned about Lennar’s profits. You know why they make a profit. Because they actually get things done. Of course they want to maximize their bottom line, they are grown ups. The city has done nothing but play childish political games and line the pockets of their cronies, the consultants. Meanwhile buildings and facilities deteriorate.
Small minds are what’s killing the possibility for Concord to attract world class businesses, higher paying jobs, an educational campus, a sports tournament and much more at the CNWS project. Sad to see our local unions holding the Council and the City hostage and using their political power to manipulate our leaders into killing what could be an amazing project. Too bad. Everyone will lose here.
Unionized laborers are small-minded people?
Why aren’t the needs of the laborers as important as the needs of higher payed, “world-class” people?
This was foreseen years ago by anybody with a brain. If the city demanded all union labor and the developer didn’t: surprise!! We have a problem. Negotiations for this should have been done first – 5 years ago. Now we have a predictable impasse.
Your understanding that the PLA demands union labor is understandable as it is being represented in that way by most of the media that I’ve read or heard. But it is not a correct understanding. The PLA requires every effort be made to employ a large percentage of local people to build the project, and that they be paid the wages and benefits of union skilled tradesmen. Membership in the union is not a requirement.
I am a local union member now, but have not always been. In my many years as an unrepresented worker I worked on many PLA jobs where I was paid union wages. Of course my employers followed the requirements as loosely as they could get away with.
This is certainly a way for union labor to get more work, but the PLA will benefit all workers that build the project.
Can’t understand why Lennar was chosen with their track record at Hunters Point. I imagine that they made campaign contributions and back room deals. If labor isn’t paid enough there is nothing left of the American Dream for them, just a big corporation making billions with labor so cheap the workers can’t afford to pay for anything at the CNWS.
It was pretty shady from the beginning. At least from where I started watching, when the two of the three final contenders who had done a lot more work to show, and nicer plans than Lennar were eliminated. Lennar was extended all sorts of leeways and courtesies that the others weren’t for reasons that weren’t clear.
measure twice….cut once.
Don’t put all your eggs in one basket.
My Momma told me……you better shop around.
Whatya going to do about HWY242?
I would say there are valid arguments for each side….its a tough question.
We have the land……exploit (y)our leverage. Time is on our side.
I think it should be a multitude of developers. I like what they did on Wilder Road in Orinda. I would love to see some high-end custom homes developed as well…….Lets start over. Don’t turn the beautiful hills into cookie cutter high density housing.
As residents and taxpayers we are watching. If this project goes down and the developer is out, who do you think is going to pay the millions of $$$$ in costs, lawsuits, etc.? It’s going to be US. $14 million the City owes taxpayers from what they borrowed from the General Fund. Then there’s the developer who will want to recoup costs. WAKE UP FOLKS. It’s going to be us footing the bill … not the labor unions.
And furthermore if the project is canned tonight, you don’t think the Navy will say “Oh Concord, you did such a good job with this, we’ll be ok with you doing this process all over again.” NO … the Navy will auction the property and sell it to the highest bidder and the Concord community will GET NOTHING and so will the labor unions. We live in the real world. And stopping this project right here and now will be a disaster for our community.
If you are a Concord resident, be cautious in advocating for a PLA or Lennar that you aren’t giving the Council an excuse to trade away the city’s community benefits to appease two powerful political players in this process.
Text of my email to Council:
Dear Concord City Council:
This is two requests regarding Item 6b on tonight’s Council meeting agenda, consideration of Lennar’s efforts to negotiate PLA(s) at the CNWS. First, please do not include any cuts to or non-tangible trades from Concord’s community benefits in any offer to negotiate a compromise between the Construction Trades and Lennar. Second, please take this opportunity to end the negotiating agreement with Lennar, sever ties with this company, and move on to a more trustworthy developer.
(1) Concord’s community benefits should not be any part of negotiations between Lennar and the Construction Trades.
It’s disappointing, but not surprising, to see the now standard power play between special interest groups and the developer come to Concord. The local public may not yet understand that this is not unusual but they will as this same scenario will play out with other special interest groups as the negotiating agreement and DDA progress.
Lennar and the Construction Trades are not really on opposites “sides” here. Both are power players in a game for profit off the resources of publicly owned land, vying for who has the most political power with our elected representatives to get the most for their group. As the propaganda media stories roll out for both sides – each side portraying a good cop/bad cop scenario – Concord’s community benefits should not be reduced or altered in any way to appease either or both sides.
According to the staff memo for this item, Lennar offered to meet the Construction Trades’ demands by reducing the community benefits to Concord to keep Lennar’s own financial gain at current negotiation levels. Lennar did this before with the blessing of Council. When asked to “sweeten” its term sheet because the offer was $50 million less for improvements to infrastructure surrounding the project than that offered in the comparable term sheet, Lennar offered $15 million dollars to rebuild the Willow Pass bridge but on the condition that Concord’s community benefits be reduced by $10 million. Council touted that as a win for Concord when simple math shows council allowed Lennar to claim a $15 million dollar addition for what in actuality was a $5 million dollar mediocre “sweetener” as well as millions of dollars less than the offer discarded by Council. Do not take the same path in this instance. Lennar agreed to community benefits as well as to work on a PLA. It should honor both separately from each other.
Adding or subtracting from local hire and labor training programs should not be traded for currently tangible community benefits to settle a PLA. These programs, while very important to include, are dependent on many factors for success, and seldom reach the lofty numbers touted to sway public opinion during negotiations. They are not guaranteed and often include provisions that the contractor need only show an attempt to hire locally and can alter that hiring if they “find” qualified workers in the target category are not available. In addition, the initial phase of our project will require highly skilled workers that will may not be easy to find all locally or train. As such, adding or subtracting from promises regarding these programs should not be counted as tangible enough to reduce monetary and other guaranteed community benefits to Concord itself and its residents.
The Navy should also be asked to help meet the PLA. Since this is over public land that the Navy initially took and contaminated, the Navy should be involved in getting a PLA done as initially desired. It can take a little less money to “sell” the already public property or wait for a new developer to be selected.
2. Concord should sever ties with Lennar at its earliest opportunity.
Concord would be doing itself a favor by recognizing that Lennar did not negotiate in good faith, especially in that it offered to reduce the deal for Concord. Council clearly leans toward a PLA for this project and should not negotiate a lesser deal for itself or any PLA just to keep Lennar in the loop. This would not be a complete start over as local officials and the public are more knowledgeable now.
Anyway, this version of Lennar isn’t even the same company that initially bid on our project. Most of the Lennar employees now work at Five Point, likely due to the bad name Lennar created for itself here in California. Five Point “managing” the project isn’t what was planned and appears to be heading down a path not originally intended.
In addition, Lennar has also broken many promises along the way. It has orchestrated campaign contributions to then Councilmember Grayson that violated the bidding process agreement, requested to make substantive changes after the term sheet bidding deadline, initiated rumors about other developers violating agreements, switched locations of where to start the project, hedged on green space for neighborhoods, and changed without warning the type of homes put forth for the specific plan. It’s a pattern of behavior that is continuing here in the East Bay from its Mare Island project which has now been sold off to two different developers. Concord will lose nothing by ending this relationship.
AB 1486 amendments do not constitute a reason to move forward with a bad deal. If the pattern of Lennar, and now Five Point, continues, the ultimate cost to Concord could be far more than any penalties amended into any finding of violations for surplus property. The economy is ever changing and we are a long way from housing being completed or any parcel being sold at the CNWS. The law could again be amended.
Council’s desire to become a “tech hub” and propaganda stories about that is also not a reason to move forward with a bad deal for Concord. Council and staff have offered no evidence of tech interest in the property and made no provisions in the specific plan for the large parcels typically requested of big tech companies. There is no evidence that tech companies or workers are even attracted to locations that are superfund sites. Council desire for tech hubs, which compete with every other city councils’ same desires, is also no reason to move forward with a bad deal for Concord.
Do not reduce or trade tangible community benefits for settle disputes between powerful players and take this opportunity to sever ties with Lennar.
Thank you for your time.
What channel is Concord City Council? I can not find it on Wave. Anybody know which it is? I’ve watched it before. Thank You
Channel 29. Still going on.
Annie,
Wave Channel 29 is where the Concord City meetings are shown. It always says “No Data” .
The meeting tonight ended around 12:45 a.m. without comments and a decision by the City Council. It will continue on Wednesday night at 6:30.
Thank-you. I left early. Overflow room full and you couldn’t hear outside.
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