Talks Begin Over Developing Ex-Naval Base

San Francisco-based Catellus Development Corp. has entered into exclusive negotiations with the city of Alameda to develop the now-shuttered Alameda Naval Air Station on the eastern edge of San Francisco Bay. The city selected Catellus over two other real estate firms--Lincoln Properties and the Martin Group--that were seeking to develop the 143-acre site. Catellus, which has 120 days to reach an agreement with the city, has proposed building up to 425 homes and apartments and up to 1.3 million square feet of office and research space on the property. The site is scheduled to be turned over to the city in 1999 after the Navy completes an environmental cleanup of the property. The air station was closed last year.