East Bay Parks to vote today on $175M Golden Gate Fields deal

East Bay park officials are set to vote Tuesday on a deal to acquire Golden Gate Fields "as-is," without environmental testing before the $175 million purchase.

The seller, the Stronach Group, would provide $8.25 million to the East Bay Regional Park District for pollution insurance, contamination cleanup and environmental testing after the buy, according to a staff report prepared for Tuesday's meeting.

During the meeting, park officials are scheduled to authorize the purchase agreement with Trust for Public Land (TPL), with the former horse racing track slated to become East Bay Parks property next year.

The vote comes amid questions about whether Trust for Public Land has done enough to involve Albany and Berkeley in its plans, particularly given the large financial hit Albany would take as a result of the deal.

TPL did not respond to repeated requests for comment from The Berkeley Scanner.

The $175 million purchase would be funded primarily by $125 million from the state of California along with $20 million from EBRPD's Measure WW.

The remaining $30 million could include $25 million from a San Francisco Bay Restoration Authority grant, which has not yet been awarded, and $5 million in private donations, according to the staff report.

The purchase is expected to close in the first quarter of 2027, although TPL is "currently renegotiating" the final deadline to complete the sale, staff wrote.

Before the deal can close, the state must approve an updated property appraisal, from Oct. 6, that was commissioned by TPL.

Golden Gate Fields deal delays environmental testing

Under the proposed agreement, "the Sellers are not allowing any environmental testing on the Property during the due diligence period." Staffers describe it as "a unique aspect" of the deal.

To mitigate "some of the potential environmental risk," TPL has negotiated the one-time $8.25 million payment to East Bay Parks for cleanup of known contamination, testing and pollution liability insurance.

The insurance would cover claims made within 10 years after closing involving previously unknown contamination, with coverage limits of at least $10 million per incident and at least $20 million overall.

Any money left after environmental expenses would remain with the park district.

The agreement would release TPL and the Stronach Group "from any future environmental liability from contamination on the site."

After the purchase, the property would enter "Land Bank" status until it becomes "safe and suitable" for public use, according to the staff report. That could happen in phases.

Staff has identified $820,000 in one-time security needs, "such as fencing and gate installation, signage, mobile surveillance technology, fuels reduction and pest management."

The bulk of the security costs are tied to fencing and gates ($500,000) and the surveillance system ($200,000), staff wrote.

The deal also includes a Verizon cell tower lease that would generate nearly $300,000 annually for the park district, with rent increasing 3% each year. The lease runs through January 2029, with an option to extend through January 2034.

According to the staff report, the tower is located "near the north side of the existing track and is a vital component to the overall Verizon network."

Golden Gate Fields: Demolition required

Tuesday's resolution also includes the requirement that "all above-ground structures and infrastructure, not including pavement" must be demolished by closing.

That requirement was already part of the deal before East Bay Parks got involved, the park district said at a town hall meeting in Albany last month.

That night, some community members said they hoped to see the racetrack clubhouse, grandstand and smaller historic features preserved for the future.

EBRPD general manager Max Korten said it was likely too late for that. In response, officials asked him to see what he could do.

Tuesday's resolution may leave the door open to an alternative, noting: "Should demolition not be complete by closing, a separate Post-Closing Operating Agreement between the Park District and Sellers will need to be negotiated prior to closing and would require a future Board action."

How much say will Albany have?

In recent weeks, Albany residents have expressed a strong desire to help shape the future park while questioning how much influence they would have, particularly after learning that key decisions, including demolition, were already part of the deal.

Speaking during public comment at an Albany City Council meeting this month, Amy Smolens pointed out that residents had spent decades weighing in on Golden Gate Fields, including at the recent town hall. She asked officials whether local ideas would matter once the park district owns the property.

"Do they need to listen to us? I mean, are they just having us give input for no reason?" she asked Oct. 5. "What say do we really have here?"

Albany officials have praised the East Bay Regional Park District for its commitment to community involvement. Some have been less enthusiastic about Trust for Public Land.

At the Oct. 5 meeting, Albany Councilman John Miki said he was "not happy at all" that Trust for Public Land had failed to involve the cities of Albany and Berkeley, and their residents.

As an example, he said TPL left officials from both cities off the invite list for two Golden Gate Fields site tours that included other dignitaries.

The second omission came even after Albany asked to be part of future events.

"They were already on notice after the previous meeting," Miki said. "I am happy to give second chances. But third chances? I'm expecting them really to step up and make sure that we, as both Berkeley and Albany, are there to participate."

Miki said TPL had not "been good partners," and observed that TPL had set the requirement that "all vertical structures shall be demolished."

But he said there might still be hope — particularly with East Bay Parks.

"I believe there's still time for those who might wish for things to be done a little differently on the close of the contract to put pressure on the East Bay Park board," he said. "Ask these questions on our behalf, and ask: Is there a possibility of anything being saved? Or at a minimum, documenting what's being torn down that will never be able to be documented in the future."

Mayor Peggy McQuaid noted that she had been able to attend the most recent site tour after being invited by Sen. Jesse Arreguín's office. She said Albany had "really good partnerships" with Arreguín and Assemblymember Buffy Wicks, who had been pivotal in getting $125 million from the state for the park deal.

"I have confidence that we will work together," she said. "I really hope that we, as a community, are heard, and that we're listened to and respected for our role in all of this."

The East Bay Regional Park District board will meet Tuesday, Oct. 20, at 1 p.m. in the board room at 2950 Peralta Oaks Court in Oakland. Members of the public can attend in person or join the meeting via Zoom.