Three real estate companies overseeing the revitalization of San Francisco’s Treasure Island are now suing each other over their expected returns on the former naval base project.
It’s unclear whether the infighting will delay what’s slated to be the largest single housing development in Northern California. The massive, multiyear effort to transform Treasure Island into a dense neighborhood includes a mix of retail space, parks, transportation services and new housing totaling about 8,000 units.
“This could definitely throw a stone into the gears and bring development to a halt,” said Sam Singer, a spokesperson representing Kenwood Investments, one of the real estate companies in the dispute.
Two real estate companies, Stockbridge Investments and Wilson Meany, filed a lawsuit last weekend against the third developer, Kenwood Investments, claiming the lengthy development timeline for Treasure Island will diminish their anticipated profits.
Kenwood on Tuesday filed a counter lawsuit, alleging that Stockbridge and Wilson Meany are conspiring to breach a contract among the three groups and steal profits.
“Stockbridge and WM tried to keep Kenwood in the dark on their plans,” the complaint from Kenwood reads. “Stockbridge and WM’s actions place the entire Treasure Island project at risk and leave Kenwood with no option but to protect its interest.”
Stockbridge representatives denied that the dispute would further delay constriction. The Treasure Island Development Authority did not immediately return a request for comment.
“Work is continuing at Treasure Island. This is a dispute between members of KSWM, an entity that, along with a Stockbridge affiliate, owns half of the Treasure Island venture,” a spokesperson for Stockbridge wrote to KQED. “The dispute involves the distribution and allocation of any future profits from the venture. We expect to resolve it without any impact on the development.’’
