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In another heated Richmond City Council meeting, the Richmond City Council on May 17, 2022, voted not to approve the proposed sale of Point Molate to a developer who, according to the city's attorneys, has failed repeatedly to comply with its numerous obligations to the city related to Point Molate. 

The meeting culminated two years of drama over Point Molate. 

But this time it was not the ideological disputes that have so often caused sparks to fly in Richmond that were at the root of what happened. It was the overall failure of the developer to follow its contractual obligations that brought the City Staff, the City's lawyers and the City's management to recommend against selling Point Molate to the developer, Winehaven Legacy, LLC, an offshoot of SunCal Inc., a southern California developer handpicked by Richmond's mayor to do a luxury housing development at Point Molate. 

The repeated failures of the developer to provide even basic information about how it would pay for the purchase and pay for the proposed development frustrated Richmond's new City Attorney, David Aleshire. Aleshire explained in detail to the City Council his multiple and increasingly strenuous efforts to get the essential information from the developer and the developer's repeated misdirection, repeated lapses in payments, repeated misinformation and repeated failure to provide the contractually required information. Aleshire finally had to recommend against proceeding with the sale and the proposed development on the grounds that it would put the city at serious financial risk. 

The City Attorney's recommendation against the sale was made against the backdrop of growing information showing that the city could lose hundreds of millions of dollars if the development went forward due to high infrastructure and fire protection costs. The development agreements between the city and SunCal's group had specified that the city could choose not to proceed with the sale if the city determined that the project put the city at financial risk. The developer repeatedly rebuffed efforts by Richmond's City Attorney, its hired outside attorneys and its staff to clarify the risks - finally causing the exasperated reaction and conclusion that the City should not approve the sale. 

In the end it was the developer's own failure to perform that sank the sale and the future development. The City Council voted 4 to 2 to have the City Attorney draw up the Resolution and the findings to not sell Point Molate to the SunCal group of entities. 

Now the city awaits the very likely move by the coalition of the Guideville Tribe (a branch of the Pomos) and Upstream Inc., to take over the marketing of Point Molate. Guideville/Upstream have informed the City they will purchase the rights to market the property on May 21, 2022, in accordance with the terms of their Settlement Agreement (reduced to a Judgment) reached over their lawsuit against the City. 

The interests in Point Molate of Upstream Inc. and the Guideville Tribe stems from their failed casino development plans of approximately a decade ago. The City had worked with Upstream and the Guidevilles on a proposed casino development at Point Molate. Mayor Tom Butt had promoted the plan but after the citizens of Richmond put a successful ballot measure out opposing the casino plan, Butt switched sides and helped vote down the casino plan. The casino developers had given millions of dollars to the city for the rights to pursue their casino development and spent more in working on the development plan. When the city refused to return the money, Upstream/Guideville sued in federal court for their money back. 

That case led to a Settlement between the City and the Guideville/Upstream group wherein: 1.) the City of Richmond was required to approve a development and sale of Point Molate within 2 years of the approvals of the entitlements for the development. 2.) If the city could not close a sale within the 2 years, then the Guideville/Upstream group would have the option to buy the property for $400 and the obligation to market it. 3) If the Guideville/Upstream group do not get the property sold within 5 years, the property reverts to the City. 

The deadline agreed to for the City to close the sale (and in this case for SunCal to act on buying the property) was agreed upon as May 21, 2022. So at this juncture the Guideville/Upstream group get to pay $400 and take over the marketing of Point Molate in accordance with the deal orchestrated by Richmond Mayor Tom Butt. 

The Guideville Tribe and Upstream had been in line to receive half of the agreed to sale price of $45 million, the other half going to the City, if the sale to the SunCal/Winehaven group had gone through. It is generally believed that SunCal/Winehaven was unable to raise the funds to buy and develop because of the extraordinary infrastructure costs and the big financial risks to develop at the remote Point Molate. It is assumed that the Guideville/Upstream group will face the same challenges. 

Point Molate has been a hot spot of fighting in the City of Richmond primarily because the mayor took a development-at-all-costs approach to the city's waterfront. Despite the wishes of the majority of the city's residents and elected officials to promote infill housing in the city center and along its transportation Corridors, the mayor wanted to sell off Point Molate for a luxury housing enclave in a spot designated as an ultra high fire risk by fire officials, a remote waterfront property next to the Chevron Oil Refinery. 

The City bought Point Molate from the U.S. Navy for $1 as part of the base closures of the 1990's and Richmond residents have been using it for recreation and open space and hoping to keep it as that. 

Because the mayor wanted to sell Point Molate for a luxury housing enclave, he pushed the SunCal plan through. The mayor alternately ignored and then derided all the input from the numerous residents who asked that the housing be put downtown where it is needed and where there is infrastructure, and to leave the waterfront as park and open space, while restoring the historic Winehaven buildings as a regional attraction. 

Instead, dismissing all pleas to hold off on approvals until the community coalesced on a plan, the mayor rushed the luxury housing development plan through, in the process tying up the city planning department, legal staff and city manager and staff, precluding any progress on the needed infill development for years. 

The SunCal development plan drew criticism from advocates of affordable housing as well as fierce opposition from environmentalists because Point Molate is the site of the last in-tact watershed in the East Bay and home of the best eelgrass and aquatic habitat in San Francisco Bay. Point Molate has been designated as park in the General Plan of the Bay Conservation and Development Commission and in the General Plan of the East Bay Regional Park District. 

Among the wild creatures that visitors to Point Molate have seen are the recently spotted bald eagles flying high over Point Molate, the river otters and leopard sharks, the multiple nests of osprey, the wild turkey, other raptors and high-value native coastal grasses and native plants, the over 600 species of living, flying, burrowing, nesting and playing critters that inhabit the area, plus evidence of possibly cat predators able to take down a deer. 

A needed sports playing fields complex has also been proposed. Point Molate is a prime location for playing fields and much desired recreational space for Richmond. The sports fields complex that has been proposed for Richmond youth and adults would allow Richmond residents to play near home and would bring teams and visitors to Richmond along with revenue to the city.