ALAMEDA -- Alameda Point will generate about $2 million more in revenue than will be needed to provide essential services such as police and firefighters when the area has been fully redeveloped 21 years from now, according to a financial analysis prepared for city officials.
The projection that city coffers will end up in the black when the former Alameda Naval Station reaches "build out" was welcomed by the City Council on Tuesday, when it was briefed on the report.
"It's certainly cause for cheer," Mayor Marie Gilmore said. But Gilmore also cautioned against earmarking the money now, noting that the city already has expenses such as for pensions and deferred maintenance that must be funded.
"We shouldn't be too quick to spend it on new programs or ventures," she said.
The report, which Oakland-based Willdan Financial Services prepared, shows that Alameda Point is expected to generate about $13 million a year in revenue when it has been redeveloped, including through property and sales taxes, businesses licenses and other fees. Expenditures are projected to be about $10.5 million.
Jennifer Ott, chief operating officer for Alameda Point, said she expects the numbers in the report will change over the coming years, reflecting how the redevelopment of the former U.S. Navy base will take place in phases.
"It's going to be a working document that changes over time as we implement the project," Ott said.
Paying for an Alameda fire engine company at a new station at Alameda Point, plus for fire inspections and prevention services, will make up the biggest expenditure at $3.3 million.
The report also notes that the station likely will be needed before the build out of the former base is finished, which might cause a deficit.
The cost of public works projects, including maintaining new infrastructure, is also projected to be about $3.3 million.
About $1.9 million will be needed for general government expenses and an additional $1.9 million to pay for the eight police officers who will be needed to cover Alameda Point, which makes up about one-third of the island, the analysis shows.
Councilman Tony Daysog questioned whether a new fire station could be built near the former base entrance at the foot of Ralph Appezzato Memorial Parkway. It could also serve as a replacement for the current station on Pacific Avenue, which serves the city's West End, Daysog said.
Alameda fire Chief Mike D'Orazi said the council would need to consider response times and other issues before approving closing a station and opening at a new location.
"That's something that's very important because response times are critical in measuring what we do," D'Orazi said.
The Planning Board will consider the financial report, which was developed as part of drafting Alameda Point's Master Infrastructure Plan, on Jan. 14. The council is set to again review it Feb. 4.
The consultant who drafted the document used the current cost for services and population projections, including for future workers at the former base, to estimate the revenues and expenses.
Contact Peter Hegarty at 510-748-1654. Follow him at Twitter.com/Peter_Hegarty.