CTC approves $176 million for project
Development gains momentum
The Oakland Army Base development project (Oakland Global), reached a major milestone on May 7 when the California Transportation Commission (CTC) voted 8-0 to allocate $176 million in state matching funds for the project. Along with approximately $76 million awarded to the Port of Oakland late last year, the project is the CTC’s largest funding allocation in Northern California.
Oakland Global, which has been in the planning stages since 2003, will convert 160 acres of underused land with obsolete infrastructure into a modern trade, cargo and bulk goods center with new logistics facilities, improved rail access and a marine bulk terminal – increasing the export volume of California’s products and delivering more goods inland.
The development is a public-private partnership between the City of Oakland, local developer California Capital & Investment Group and Prologis, an international warehouse developer headquartered in San Francisco. In addition to city, state and private investment, the Port of Oakland and the federal government have also contributed funding to match the CTC funds for the $500 million project. A second development phase on Port of Oakland land could expand the project further in coming years.
In order to comply with CTC requirements, hiring and construction work is expected to get underway by the end of 2013. The CTC’s funding criteria focused on increasing the speed and volume of cargo and goods traveling through the state’s ports; making that travel more timely and reliable; improving roadway safety; and reducing truck emissions by moving more goods by rail.
“This funding allocation is a critical step. We are grateful to all of those who are working on this project and believe it’s a huge win for Oakland,” said Phil Tagami, President and CEO of California Capital & Investment Group.
The new Oakland facilities will increase business efficiencies and are expected to attract more commerce and investors — resulting in local and regional economic stimulus. Based on the agreement signed in October 2012, 50 percent of construction jobs will go to local residents and construction employers will not ask applicants about criminal records. Operations jobs will follow the construction of new warehouses and other logistics facilities.