Lehman Brothers to foot bill for East Oakland hills demolition.
Lehman Brothers, the bankrupt financial partner for SunCal’s stalled Oak Knoll residential development, has agreed to pay for demolition of nearly 100 hazardous wooden buildings scattered across the 67.5 hectare site in the East Oakland hills.
The detailed announcement could come as early as today, said Lawrence Jacobson of Cohen and Jacobson LLP, the attorney handling the case for Oakland.
The city has filed claims of $6.7 million in U.S. Bankruptcy Court against Lehman Brothers, the amount it estimated it would take to secure the former Naval base and reduce the fire hazard created when SunCal ordered its contractors to walk away from the planned 960-unit development last year.
The estimate included demolition of old barracks, warehouses, garages and homes that have been torn apart by vandals seeking copper and other metals. It does not include the multistory hospital building or historic Club Knoll. It’s likely all the buildings contain asbestos.
Lehman already has released $500,000 to repair fences, hire security guards to protect the site, clear downed trees and trash, and bring in hundreds of goats that are mowing their way through the dry grass and weeds.
The agreement to release more money for the demolition came about after representatives of the bankruptcy court and Lehman Brothers and SunCal Companies toured the abandoned Oak Knoll buildings with city and Fire Department officials a few weeks ago, said Jacobson, adding that there still are some details that need to be worked out.
Further details here.
