North Mare Island FAQs
Q: What changes have occurred since 2019 that has prompted City and Nimitz to propose changes in the 2019 term sheet?
First, after Nimitz brought SLC on board, SLC identified that importing soils necessary for the development of North Mare Island would cost approximately $20 Million based on the unit costs provided in a 2018 geotechnical report ENGEO prepared for the City. These soil costs are in addition to the $30 Million site development costs and $3.3 Million of demolition costs that City had identified and factored into its conclusion in 2018 that the “As Is” market value of North Mare Island was equal to negative <$20.9 Million>. The uncertainty regarding the length of time it will take to import an estimated two million cubic yards of fill and raise the elevation of North Mare Island and complete surcharging and the uncertainty as to when market conditions will support vertical development, partly due to the COVID pandemic, as well as the developer reporting that the investment was not feasible on leased land, have prompted City and Nimitz to revisit some of the key assumptions embodied in the 2019 term sheet.
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