Exclusive Negotiating Agreement with
Pacific Fusion for Area Along Orion
Street Between West Pacific and
Ticonderoga Avenues
February 18, 2025
1 Enterprise District Background and History
• Zoning for Enterprise District focuses on creating
thriving employment center on 100+ acres
• Mostly nonresidential zoning, aside from 100’ buffer on Main Street/Central Avenue
• Market requires opportunistic approach to
development
• Location of development determined by
infrastructure need
• Council work session and RFP process in 2019
• Staff identified ~24 acre parcel fitting most
needs efficiently
• 2019 effort undermined by Surplus Land Act,
Tarry Refinery Waste issues
2 Final Zoning
Map Excerpt
Enterprise District History - 2024
• August 2024 – Mayor’s Economic Development
Advisory Panel study session on Enterprise
District development strategy.
• October 2024 – Council study session on
Enterprise District. Direction to advance
marketing of 12- and 24- acre opportunities in
early 2025.
• December 2024 – Received proposal from
Pacific Fusion
• January 2025 – Closed Session with City Council
to consider proposal 3
About Pacific Fusion
• Founded in 2023
• Locations in Livermore and Fremont with partnerships
throughout the Bay Area
• Successfully utilized fusion technology to create energy positive fusion reaction, using tritium and deuterium
• Nearly $1 billion in venture capital investment conditioned on completion of demonstration facility by 2030
• Considering several sites for this project, looking to make a decision in mid-2025
Partnered with Hines as real estate developer for this project in Alameda. However ENA is with Pacific Fusion only, with rights to assign to Hines.
4 Fremont
Fusion Center
Collab. Center
(Livermore)
Project Benefits
• Consistent with vision established through
concept plan, zoning, study session
• Supports City’s sustainability and economic
development goals by supporting a business
in clean energy sector
• Unique opportunity to secure job generating
development in a slow economic cycle
• Anticipate roughly 250 jobs created in
Alameda at completion of first building (150
engineer/PhD’s, 50 technicians)
• Infrastructure package would catalyze future
land sales and development
5 Image Courtesy of Pacific Fusion
Exclusive Negotiating Agreement Overview
• Allows both parties to explore the possible
sale and development of the block between
West Pacific and Ticonderoga Aves.
• City would not negotiate with others during
this time for this land, and Pacific Fusion
would advance certain steps in the planning
and entitlement process
• City and Pacific Fusion would work on the
terms of a possible sale
• Term:
• 12 months for Phase 1
• 24 months for Phase 2
• 3 options to extend for 3 months
6 West Pacific Ave
West Ticonderoga Ave
Orion Street
Exclusive Negotiating Agreement (ENA) –
Other Details
Main Steps in ENA:
- Reviewing development plan and
undertaking entitlements process
- Negotiating terms of a possible sale of land
- Conducting other due diligence
Developer Obligations:
- Submit Development Plan to City for review
- Submit and Implement Community
Engagement Plan
- Submit Evidence of Financial Ability to
Undertake Project
- Define Project Team
7 Preliminary Project Terms (to be negotiated)
Initial 12 acre property for first phase of
development
Replacement of backbone infrastructure,
valued at roughly $26.6 million, including:
- Adjacent streets
- New water lines and dry utilities
- Improvements to sanitary sewer and
stormwater connections
Option to purchase additional property for a
second phase, with terms TBD
These terms would be negotiated and
refined over next several months
8 9Pacific
Fusion
Proprietary Information and
Graphic
Mid 2025:
Site Control - Land
Conveyance Vote
2030:
Full operations
Q1 2027:
Shell ready for PF
2028:
Commission System
2029:
Radiological License
Accelerated timeline for completion of this facility:
Simultaneous
real estate
negotiation and
planning
approval process
Rendering of proposed demonstration
facility inside of proposed building
Next Steps if Approved
• Developer team has 12 months to complete entitlement & term sheet, but project expected to move much faster
• Goal is to return to council mid-2025 to consider project deal terms • Pacific Fusion and Hines are ready to engage community, begin project design and entitlements, negotiate deal terms
• BRED, Planning, Public Works, and City Attorney will be engaged to advance the project
10 Recommended Motion
Adopt a resolution approving a 24-month ENA with Pacific Fusion, with options to extend for a total of 33 months, for potential development of a 12- to 18-acre property along Orion Street between West Pacific Avenue and West Ticonderoga Avenue at Alameda Point, for a research and development facility.
11