Relations between the City of Alameda and developer SunCal appear to have soured in the wake of voters' overwhelming defeat of SunCal's plan to redevelop Alameda Naval Air Station. Three days after 85% of voters rejected SunCal's plan during a February 2 special election, city officials sent SunCal a notice of default, the first step in ending SunCal's exclusive negotiating agreement to redevelop the base.

SunCal's plan for 4,800 housing units and millions of square feet of office, industrial and retail space required the electorate's willingness to lift existing voter-approved limitations on multi-family housing development and density (see CP&DR In Brief, February 1, 2010). About three weeks before the election, SunCal submitted an "optional entitlement application." However, that application is basically the same as the plan rejected by voters and does not comply with the city's charter or municipal code, city officials concluded. If SunCal does not "cure the defects" and submit a plan that complies with local laws within 30 days, the city could cancel the exclusive negotiating agreement.

SunCal responded with a public letter in which it questioned the city's commitment to base reuse and to the exclusive negotiating agreement.