Pelosi Statement on Agreement to Transfer Treasure Island to the City of San Francisco

Dec 16, 2009
Press Release

Contact: Brendan Daly/Nadeam Elshami/Drew Hammill, 202-226-7616

Washington, D.C. - Speaker Nancy Pelosi issued the following statement today praising an agreement reached this afternoon between the Navy and the City and County of San Francisco enabling the transfer of Naval Station Treasure Island, a former base located in San Francisco Bay that ceased Naval operations in 1997:

"Today's Treasure Island transfer agreement means the City can quickly move forward with substantial redevelopment plans that include essential infrastructure, open space and affordable housing, as well as significant contributions to industries central to San Francisco's economic vitality - tourism, retail, restaurants and entertainment. In total, more than $5 billion in public and private investments will be generated. This means thousands of new permanent jobs for our region, and thousands more temporary jobs during construction.

"I am deeply grateful to House Armed Services Committee Chairman Ike Skelton (D-MO) for his tireless work to ensure the inclusion of provisions in the fiscal year 2010 National Defense Authorization Act designed to expedite overdue base transfers, which have been delaying economic growth in local communities for far too long. Those provisions were an essential component of today's success.

"These forthcoming economic benefits will provide a welcome boost to San Francisco's economic recovery, and to the entire region."

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Background information:

Language was included in the fiscal year 2010 National Defense Authorization Act to expedite the transfer process for Treasure Island and dozens of similarly situated former bases across the country. In addition to language emphasizing the need to expedite base transfers and demonstrate significant progress in that regard within six months, the profit sharing transaction structure authorized in the bill was an essential component of today's transfer agreement.

This mechanism provides the Navy compensation based on actual costs and revenues in order to end ongoing delays caused by disputes over estimated fair market value. A dispute over the fair market value of Treasure Island had been delaying the creation of an estimated 3000 permanent jobs and over 21,000 temporary jobs during construction.