ALAMEDA -- PM Realty Group will continue as property manager of Alameda Point and Cushman & Wakefield will serve as the group's leasing agent, the City Council has decided.
PM Realty, which has been managing the former U.S. Navy base since 2000, edged out Phil Tagami's California Capital & Investment Group, which was behind the restoration of Oakland's Fox Theater and Rotunda Building and is now spearheading the redevelopment of the former Oakland Army base.
"I think PM Realty has earned the right to get this lease," City Councilman Tony Daysog said Tuesday, when the council voted unanimously for city officials to work out the leasing and management agreement.
While the contract still must be negotiated, city officials have budgeted about $1.9 million for the services.
Along with PM Realty and Tagami's group, Gallagher & Lindsey and Colliers International with Mission Bay Development Group responded to the city's request for proposals in May.
Tagami's group and PM Realty were the finalists after their applications were reviewed by a panel made up of City Attorney Janet Kern, Interim Community Development Director Debbie Potter, and representatives from the real estate division of the Presidio Trust and from Kennedy Wilson Properties, which manages Mare Island.
The move to continue working with PM Realty follows the city taking ownership of about 1,400 acres of Alameda Point in June through a no-cost conveyance agreement with the U.S. Navy.
The agreement, the first phase of the base's overall transfer, provided the city with about 500 acres of land and nearly 900 acres beneath San Francisco Bay.
The selection of PM Realty also comes as city officials are taking pivotal steps in Alameda Point's redevelopment, including the creation of a draft infrastructure plan.
"We are at the precipice of being a landlord and a developer," said Nanette Mocanu of the city's development department.
Currently, the city's real estate portfolio includes eight cell tower leases, 62 commercial, marina industrial and residential tidelands leases, as well as 156 Alameda Point leases representing 2.3 million square feet of space.
Among the major tenants at the former Navy base are St. George's Spirits, Faction Brewing, the Antiques by the Bay monthly antiques and collectibles fair, and Beyond Productions, which is behind the "MythBusters" television show.
The city may have gotten just four responses to its request for proposals from property management companies because of the overall size of Alameda Point, Mocanu said.
"We speculate the market is more interested in the development of Alameda Point than managing a property this complex and vast," she said.
On Nov. 1, Tagami's California Capital & Investment Group officially kicked off the first phase of transforming the former Oakland Army Base into a global logistics center with a ceremony featuring Gov. Jerry Brown, Oakland Mayor Jean Quan and U.S. Rep. Barbara Lee, D-Alameda.
The $500 million project includes installing utilities and other infrastructure and preparing sites for the construction of buildings on about 140 acres owned by the city of Oakland.
"How would we know that we would come first?" Councilwoman Lena Tam asked before Tuesday's vote, noting the scale of the Oakland project.
Daysog said he believed Tagami could still play a role in the redevelopment of Alameda Point, especially given his background in preservation and the need to retain historic former U.S. Navy sites.
"Please, keep us listed in your book," he said.
Contact Peter Hegarty at 510-748-1654 or follow him on Twitter.com/Peter_Hegarty.