City, Navy settle on Treasure Island’s price 

The details of the multimillion-dollar land swap between The City and the Navy for Treasure Island have been hammered out, setting the stage for development at the Bay island to move forward.

Mayor Gavin Newsom on Tuesday introduced legislation that included the terms of the economic development conveyance of the property from the Navy to Treasure Island Development Authority, which oversees the project.

Under the agreement, The City will pay $55 million over 10 years — $5.5 million annually, plus interest. In addition, the Navy will receive up to $50 million if the project’s return hits 18 percent from the planned housing units, hotels and retail.

It’s a long way from the $250 million the Navy wanted for the 450-acre site, which has been abandoned since the government left in 1997. However, The City disagreed with that appraisal, deeming the land to be worth roughly $22 million.

Navy officials did not return phone calls seeking comment.

The City has been negotiating with the Navy for the past three months, trying to create an agreement that was fair for both parties, Newsom’s economic adviser Jack Sylvan said.

Now, the mayor needs city supervisors to sign off on the agreement before it can become final.

If the supervisors endorse the agreement, which will be heard next month, the project could break ground within the next year.

Board President David Chiu supports the agreement.

The project, which will take 10 to 20 years to finish, will include 6,000 residences, three hotels, a marina, a commercial town center and nearly 300 acres of parks and open space.

It should create up to 2,000 construction jobs annually until buildout.

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