NAS Alameda was identified for closure under the Base Realignment and Closure (BRAC) Program in 1993, and ceased operation in April 1997. An agreement between the Navy and the City of Alameda for transferring the land to the City for future development was reached in 2006. One of the larger issues between the Navy and the City has been paying the costs of the environmental cleanup required. Prior to the transfer, some of the facilities of the former base have been leased to private tenants, and the City of Alameda.
The City of Alameda has been planning the redevelopment of Alameda Point since 2000. Complicating the redevelopment are number of constraints associated with the approximate . There are land use constraints consisting of Tidelands Trust, soil and groundwater contamination, and wildlife refuge buffer requirements. Physical constraints include geotechnical issues and 100 year flood plans. Institutional and contractual constraints revolve around Alameda Measure A, the Alameda Naval Air Station Historic District and existing residents and leases.
In August, 2001, Alameda selected Alameda Point Community Partners as the master developer for Alameda Point. Alameda Point Community Partners (APCP) was a partnership of financier Morgan Stanley, Shea Homes of Livermore, Centex Homes of Dallas and the Industrial Realty Group. The development was estimate to cost $2 billion and take 15 years. Alameda Point Community Partners beat out Catellus and Harbor Bay/Lennar and signed a two-year exclusive negotiating contract a year ago to win the right to be Alameda Point's master developer.
By 2005 only Shea Homes and Centex Homes were working on redevelopment plans. A Preliminary Development Concept called the building 1700 homes in Phase One of the development of Alameda Point. In 2006 between the City of Alameda and the Navy agreed to $108 million purchase deal.
In September, 2006 APCP decision not to move forward with the development plan identified in the Preliminary Development Concept.