OAKLAND — The $8.3 million land deal for Oakland’s embattled recycling contractor to construct an enormous new recycling plant on the previous Oakland Military Base is useless, months after two executives have been indicted on federal fees partially tied to the challenge.
California Waste Answer’s bid to relocate the corporate’s West Oakland vegetation onto 12 acres of the ex-Military base’s North Gateway parcel was axed earlier this 12 months by Oakland Metropolis Administrator Jestin D. Johnson, a metropolis spokesperson not too long ago confirmed.
The choice ends a long-delayed challenge that was thrust again into the general public highlight over the previous 12 months, when federal investigators claimed the land served as one cog of an alleged bribery scheme between former Mayor Sheng Thao and the CWS’ father-and-son government crew of David and Andy Duong. In January, the Duongs, Thao and her accomplice, Andre Jones, have been charged with conspiracy, bribery, wire fraud and mail fraud, in response to a federal indictment that alleged guarantees have been made to “get land deal at Army base done from mayor staff.”
The deal’s demise additionally brings uncertainty to the way forward for CWS’ present vegetation off tenth and Wooden streets, within the Decrease Bottoms neighborhood of West Oakland. For years, neighbors have complained about air air pollution believed to be tied to the vegetation, the place vehicles dropping off recycling come and go. Research have proven larger ranges of bronchial asthma and different respiratory ailments within the space, located not removed from the Port of Oakland and a number of freeways.
Brian Beveridge, government director of the West Oakland Environmental Indicators Venture, was incensed by how quietly town terminated the deal. He mentioned a challenge of such significance “should have gotten every opportunity to get done.”
“This has been a 23-year exercise in a community communicating a vision for itself — and the city listening and then doing what they want to do,” Beveridge mentioned. “It makes me angry that we have a city government that doesn’t care what the community thinks.”
Councilmember Carroll Fife, who represents West Oakland, mentioned CWS’ failure to stay as much as its ends of the settlement left town no selection. Nonetheless, she expressed unease on the notion of CWS not shifting additional away from properties, “because the community wants them out of the neighborhood, which is completely sensible.”
Fife added that “we are looking at other opportunities for use of that parcel, and we have some pretty strong irons in the fire.” She didn’t elaborate, besides to say they don’t contain housing, regardless of her earlier assist for turning the land right into a village for individuals experiencing homelessness.
A press release from a California Waste Options spokesman known as the transfer “deeply disappointing,” and criticized town for “unilaterally” ending the land deal. The assertion mentioned the corporate had provided to pay the complete $8 million buy value “as a demonstration of our commitment to move forward with the recycling facility project.” CWS already spent $5 million on permits, environmental research and different work, in response to the assertion.
“This project represented an opportunity to build a locally operated, sustainable recycling facility that would serve the entire city, create hundreds of high-quality union jobs and generate significant tax revenue,” the corporate’s assertion learn. “We remain hopeful that the city will re-engage with CWS to revive this important initiative — and avoid yet another missed opportunity for Oakland.”
The challenge has been hampered by quite a few delays because the firm first proposed shifting its vegetation to the North Gateway parcel in 2012. Despite the fact that CWS blew previous plans to interrupt floor in December 2022 and January 2023, the corporate’s extension requests have been granted.
Extra not too long ago, town’s tone appeared to shift.
On March 14, 2025, lower than two months after being indicted, David Duong once more requested metropolis leaders for an extension to shut on the property. A lot as he had in 2024, David Duong cited “extraordinary and unprecedented challenges,” together with rising materials prices, excessive borrowing charges and the financial uncertainty caused by “federal trade policies and tariffs.”
Within the course of, Duong requested town waive its demand that CWS start development on the challenge inside 60 days of closing the deal. Such a change could be vital, on condition that the sale of the land is solely contingent on the corporate constructing its new plant, whereas giving up its rights to function at its present vegetation.
Alternatively, the elder Duong mentioned CWS might simply shut on the property and pay the complete $8.3 million value for it, so long as town waived that groundbreaking requirement.
In a written response on March 25, Johnson, town administrator, countered that CWS had already been a couple of month late in submitting quite a few paperwork demonstrating progress on the challenge, together with proof they’d insurance coverage and a development contract. He ordered the corporate at hand over the fabric inside 60 days, and pay the $425,000 extension price.
Johnson terminated the deal, in response to a letter despatched to CWS on Could 28. In it, Johnson mentioned that the recycling firm by no means supplied the excellent paperwork or despatched cost.
