Potential Sale of
13 Acres at
Alameda Point to
Pacific Fusion
June 17, 2025
1 Background
• October 2024 Enterprise District Study
Session to explore development
opportunities and constraints
• Council authorized Exclusive Negotiating
Agreement with Pacific Fusion
February 18, 2025, for two-year period
• Staff and Pacific Fusion have negotiated
an Option to sell 13 acres of property for
development a nuclear fusion research
and demonstration facility
2 About the Project
3 • First phase would involve sale of 13.033
acres to Pacific Fusion (Phase 1)
• Intent to develop R&D facility including
nuclear fusion pulsar along Orion
Street between West Pacific Ave and
West Ticonderoga Ave
• Not a power plant: intended for
research and testing purposes only
• Pacific Fusion must have facility
operational by 2030
• PF site selection and construction
expected to commence by early 2026
West Pacific Ave
West Ticonderoga Ave
Orion Street
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
4 Image Courtesy of Pacific Fusion
5 Panoramic View of Site from W Ticonderoga Ave
Area where Orion
Street Would
Connect Through
Building 530
Would be
Demolished
New W Ticonderoga,
Skyhawk would remain
New Bldg would orient
toward Orion &
Ticonderoga
Current Site Conditions
Expected Approvals & Development Process
6 June July August Sept Oct Nov/Dec 1st Quarter 2026
CEQA
Real Estate Negotiations
Entitlements & Development Agreement (DA)
Tarry Refinery Waste Remediation (Chevron)
Developer works on conditions of option (incl entitlements) Public Hearings (Planning Board, City Council)
*
Developer
Purchases
Land
Building
Permits
We are
here
CEQA and Zoning Compliance
Project is consistent with General Plan, Zoning and
Alameda Point EIR
Alameda Point EIR evaluated buildout of Enterprise District with 5.5 million square feet of repurposed and new
employment space, for 8,900 employees
Completed environmental review checklist pursuant to
CEQA Guidelines Section 15183 specifically for this project This project would not introduce substantial changes or new information not already evaluated
Staff recommend that the Council finds no further analysis is required based on CEQA checklist included with this item 7 Third-Party Safety Assessment
Terraphase Engineering Inc. and The Palladino Company, Inc. assessed community health risks
• Community exposure well within safety thresholds even under worst-case scenario modeling
• California Department of Public Health will regulate and monitor use and disposal of radioactive materials through a Radioactive Materials License (RML)
• RML will include sufficient safety protections to limit worker and resident exposures to neutrons or tritium during operation and decommissioning.
The assessment concludes that the overall risk to the community is low 8 Purchase Option Terms
9 Purchase Price of $28,878,956 would be provided by
Pacific Fusion and Hines (their developer) in form of
backbone infrastructure consistent with Master
Infrastructure Plan (MIP)
Net of Closing Costs and contingency, expected
infrastructure package of ~$22-24 million would
include:
- New Orion Street from W Pacific to W
Ticonderoga (2 blocks)
- Improvements on W Ticonderoga from Orion
Street(1 block)
- New sewer pump station & repairs to existing
sewer lines
- Use existing stormwater lines & outfall, with
repairs
- AMP power from Cartwright substation
Purchase Option – Performance Milestones
10 Accountability: binding milestones provide timely project delivery and deter land-banking • Entitlements:
• Complete Design Review, Development Plan and Tentative Map package submitted by Nov. 30, 2025 • Planning Board and City Council action no later than Summer 2026 (target Q4 2025) • Site Improvements, Building Permits and Final Parcel Map Submittals – Fall 2026 • Construction
• Horizontal: Site demolition & infrastructure substantially complete 18–24 months after permits issued • Vertical: Must begin no later than 18 months after notice to proceed with horizontal work • Certificate of Occupancy:
• Public Improvements must be complete prior to Certificate of Occupancy • Must be obtained within 36 months from start of vertical construction.
Purchase Option Terms
11 Cost Overruns:
• City and developer to confer at (1) construction bidding, (2) 50% constructed, and (3) 75% constructed, to revisit scope of offsite improvements if improvements exceed purchase price
• City would share up to $2.5 million in cost overruns beyond the agreed to cost
Conditions to Buy Property (to “exercise option” and to “close”) • Pacific Fusion cannot buy property if they have not:
• Obtained all planning entitlements including Council-approved development agreement
• Obtained approval of tentative map
• Confirm offsite construction contract is executed with scope consistent with agreed-to infrastructure improvements
• Confirm financing plan, and secured completion guarantee for off-site infrastructure
Current condition of Pacific/Orion
Intersection vs new AP Intersection
Recommended Motion
12 Staff recommends that the City Council approve various actions related to the potential purchase of 13 Acres of land in Enterprise District for a Pacific Fusion R&D facility, including:
1. Finding that the project and related actions are subject to streamlined environmental review under CEQA, and that no further environmental review is required, as described in the streamlined CEQA analysis (Exhibit 2);
2. Adopting a resolution declaring up to 21 acres of land located at Alameda Point to be exempt Surplus Land under the Surplus Land Act; and
3. Introducing an ordinance to approve the Purchase Option in furtherance of the Purchase and Sale Agreement for the Pacific Fusion R&D Facility, and authorizing the City Manager to negotiate and execute a purchase and sale agreement and deed consistent with the terms of the Purchase Option.
Additional Slides – Views of Site and
Backbone Streets Elsewhere in Alameda Point
13 14
View of W Ticonderoga Ave from Skyhawk St View of Orion St from W Pacific Ave
View of W Tower Ave from Lexington St View of PanAm Way from W Tower Ave View of Orion St from W
Ticonderoga Ave
15 View of Site Looking North from West Ticonderoga
Avenue
View of Site Looking South from W Pacific Ave
View of Northern Portion of Site Looking North from
Current W Oriskany Ave
View of Southern Portion of Site Looking South from
Current W Oriskany Ave
16 Building 530, View from W. Oriskany