The City of Concord Local Reuse Authority (LRA) has successfully reached a financial agreement with the United States Navy (Navy) over the price and terms of payment for the approximately 2,422 acres of property to be redeveloped by the Reuse Project under an Economic Development Conveyance.
The agreement, the Navy Term Sheet, is supported by the project’s Master Developer, Brookfield.
The LRA and Navy are considering their final approval of the Navy Term Sheet concurrently. The City Council, sitting as the LRA, will consider the Navy Term Sheet, revisions to the existing Brookfield Term Sheet, and amendments to the Exclusive Negotiating Agreement with Brookfield at their regular meeting on May 26, 2026.
Gaining approval of the Navy Term Sheet will allow the LRA and Master Developer Brookfield to start the drafting of the Specific Plan and other entitlement documents for the project.
The staff report and related documents are posted for public review here: https://www.concordreuseproject.org/DocumentCenter/View/2374/Term-Sheet-and-Negotiating-Agreement-Report
According to the staff report:
The Navy Term Sheet establishes, for the first time, the price and terms of payment for the approximately 2,422 acres of property to be redeveloped by the Reuse Project under the Economic Development Conveyance. The balance of the approximately 5,038 acres planned under the Reuse Area Plan (2012) has, or will be, transferred to the East Bay Regional Park District or Contra Costa County as no-cost Public Benefit Conveyances.
Reaching agreement on the price and terms of payment for the EDC Property is a key milestone as it allows for more financial clarity around project costs, which in turn allows the LRA and Brookfield to proceed with the drafting of a Specific Plan for the Reuse Project as overall project financial feasibility is better understood. The price and terms of payment to the Navy are summarized in the Analysis section below and found in Attachment 1.
The Navy Term Sheet is an agreement that will be further refined in a subsequent EDC Memorandum of Agreement (EDC MOA), between the LRA and Navy addressing property conveyance based on the Navy Term Sheet, but in the format required by federal regulations. Similarly, the Brookfield Term Sheet is an agreement that will be further refined in a future Disposition & Development Agreement (DDA). Both documents (the EDC MOA & the DDA) will be negotiated in parallel with the Specific Plan entitlement process and become operative once the project is approved in the future by the City Council
It also stated:
The Brookfield ENA established a 4-year schedule for both Navy negotiations and completing the Specific Plan entitlement process including the negotiation of the DDA by March 2028. Because Navy negotiations have taken longer than expected, an additional time of 19 months is estimated to be required to reach the final approvals envisioned in the ENA.
Navy Term Sheet [Attachment 1]
The Navy Term Sheet articulates the price and terms for the initial property transfer, which is approximately 1,000 acres, and subsequent property transfers. The financial consideration the Navy will receive is based on Brookfield’s Conceptual Preliminary Land Use Plan which includes five (5) development phases over a roughly 30-year timeframe (See Exhibit B in Attachment 1, Navy Term Sheet) and the matching confidential financial proforma.
The financial payments to be made to the Navy are broken into four (4) categories:
- A deposit of $4.6 million at the close of the initial property transfer in 2030.
- Four annual Guaranteed Deferred Payments of $10 million plus interest as payment for land in Phases 1-3 of the Conceptual Land Use Plan; the payments occur annually beginning in 2033 and ending in 2036.
- Gross Land Proceeds payments of 10% from Phase 4 land transfers and 12% from Phase 5 land transfers.
- Fifty percent (50%) of the LRA’s share of profit participation in all development phases that achieve an Internal Rate of Return for Brookfield above 18%. If the project financially performs to plan, the Navy should receive approximately $628 million over a thirty-year build-out of the project. The overall financial performance of the project is best summarized in Exhibit B of the Brookfield Term Sheet
The Navy Term Sheet also sets timelines for the negotiation of two implementing documents.
- A Lease in Furtherance of Conveyance (LIFOC) to shift security and maintenance responsibilities for the entire EDC Property from the Navy to the LRA (funded by the Master Developer) as early as practical, but no later than initial property transfer (2030). This LIFOC will provide the LRA/Master Developer the ability to conduct pre-development construction such as wetlands creation and infrastructure installation prior to transfer of the initial or subsequent properties.
- An EDC MOA which is the comprehensive agreement between the LRA and Navy with the specific terms and conditions for the conveyance of the property based on the Navy Term Sheet, but in more detail and final form, as required by federal regulations. The EDC MOA is to be negotiated and executed within 90 days of Navy Term Sheet approval and Navy reserves the right to change conveyance methods should the EDC MOA not be executed within 12 months.
Brookfield Term Sheet [Attachment 2]
Revisions to the Brookfield Term Sheet are necessary because its provisions were negotiated and accepted in 2024 before the Navy’s required land price and terms were known. In order to meet the Navy’s land price and terms, and maintain the financial viability of the project, the timing of certain infrastructure and community benefits have been shifted or deferred.
Before reviewing the necessary deferrals, it is important to note key items (not a complete list) that are not being deferred or changed.
- The Project’s overall residential unit count of 12,272 adopted in the Area Plan (2012).
- The commitment to 25 percent affordable housing.
- The legally binding agreements provide 16 acres for permanently supportive housing and 10 acres for Food Bank expansion.
- The commitment to 6 million square feet of all types of commercial space to support job creation.
- The 868 acres of local parks, paths, and bike ways – supplementing the 2,600 acres of the Thurgood Marshall Regional Park – Home of the Port Chicago 50.
- The timing and financial contributions towards the Community Center/Library Project.
- The local labor terms and the Project Labor Agreements with both the Building Trades Council and the Carpenter’s Union.
These community goals for the project are only made possible by reaching an agreement with the Navy
The deferrals in the revised Brookfield Term Sheet are:
- The Veterans Land Set Aside – 4 acres are deferred from Phase 1 to Phase 3. (Site will be identified in the Specific Plan process allowing fundraising for design and construction to begin at entitlement.)
- The Tournament Sports Park – A $5 million financial contribution to the park’s development costs is deferred from Phase 1 and merged with the Phase 2 $15 million contribution, creating a $20 million contribution in Phase 2. (The Project’s overall contribution for this park is $100 million.)
- LRA participation in the profit model formula is now to be split fifty-fifty with the U.S. Navy. (A term consistent with Navy Term Sheet.)
- The repayment of the LRA $15 million loan to the project is deferred from Phase 1 to Phase 3. (This deferral improves the fiscal integrity of Phase 1 which incurs significant up-front infrastructure costs.)
- Certain Backbone Infrastructure (listed below) is deferred from Phase 1 to Phase 2: (Please see Brookfield Term Sheet – Exhibit C – Backbone Infrastructure by Development Phase.)
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- Construction of the Evora Road connection from Port Chicago to Mt. Diablo Creek and Diablo Creek Golf Course repair
- Construction of the Evora Road bridge at Mt. Diablo Creek
- Construction of the Kinne Culvert at Mt. Diablo Creek
- Creation of a Potable Water Storage Reservoir of approximately 1.65 Million Gallons Day
They are also available through the project’s website: www.concordreuseproject.org
Photo by City of Concord
Questions can be directed to Guy Bjerke, Director of Economic Development & Base Reuse, at 925-671-3076 or at [email protected]
Questions for Brookfield can be directed to Emily Boyd at [email protected] or (925) 314-4030. Brookfield also has a project website at concordbpproject.com.
Related/Previous
- March 2024 – Concord City Council Accepts Brookfield Term Sheet
- Nov 2023- Concord Set to Talk Concord Naval Weapons Station Term Sheet
- Aug 2023 – Concord Selects Brookfield Properties as Developer for Base Reuse Project
- Aug 2023 – HAP Withdraws from concord Naval Weapons Station, Grand Jury Report Also Out
- May 2023 – Concord to Consider Master Developer Selection Process For Naval Weapons Station
- Jan 2023 – Concord City Council Votes to Reject Naval Weapons Station Redevelopment Term Sheet
