After years of negotiations, Oakland city leaders have officially terminated the lease and development agreement with California Waste Solutions (CWS) concerning the relocation of the city’s recycling plant from West Oakland to the former Oakland Army Base.
This surprising development, confirmed by city spokesperson Sean Maher, was disclosed in a recent report regarding air quality at the former army base.
The termination of the deal, which was first reported by the Oakland Observer, comes as a significant upset to local residents who have long sought the removal of the recycling plant from their residential neighborhood.
CWS has held the city’s curbside recycling contract and has been in discussions with Oakland since the late 2000s about constructing a new waste sorting and recycling facility on the North Gateway parcel of the army base.
Residents in the Lower Bottoms neighborhood have expressed concerns over the current facility’s impact on their health, with studies indicating higher asthma and respiratory disease rates in the area.
CWS had sought multiple extensions for the development, with CEO David Duong requesting a nine-month extension in February 2024 and a one-year extension in March 2025, citing financial challenges such as material costs and high borrowing rates.
Instead of approving the requested extensions, the city issued a 60-day deadline for CWS to submit overdue materials, including proof of insurance and financing documentation.
According to the city’s termination letter, CWS failed to comply with this deadline and also neglected to pay $425,000 that was necessary to secure an extension.
In response, a spokesperson from California Waste Solutions stated that the city’s decision to terminate the agreement occurred even though the company had offered to pay the full purchase price of over $8 million, which they claimed demonstrated their commitment to the project.
A spokesperson for the City Administrator noted that while CWS did propose to buy the property for less than market value, the City Council did not advance any action to accept this offer.
The controversy surrounding the project is heightened by recent legal troubles involving CWS executives. Earlier this year, federal prosecutors charged CEO David Duong, his son Andy, and former Mayor Sheng Thao along with her partner Andre Jones in an alleged bribery scheme.
Prosecutors claim that Thao and Jones received cash payments in exchange for promoting the Duongs’ interests, including securing the contentious land deal at the army base.
Despite these challenges, lawyers for CWS conveyed that they intended to uphold their recycling contract with Oakland, which is set to last until 2034, and still planned to work toward the construction of the new facility at the former army base.
CWS has already invested over $5 million in the project, which included acquiring necessary permits, conducting environmental studies, community outreach, and pre-construction planning.
While expressing disappointment over the city’s decision to end the agreement, CWS remains hopeful that the project could still be revived.
A spokesperson for the city mentioned that other entities, including the Port of Oakland and metal recycling company CASS Inc., have shown interest in the site.
Last year, negotiations between Oakland and CASS for a development agreement were still ongoing.
Despite no exclusive deal currently in place for the same location, the city has remained open to future development opportunities.
Brian Beveridge, co-executive director of the West Oakland Environmental Indicators Project, expressed his surprise at the termination of the lease, stating that advocates had pushed for the plant’s relocation for years.
He noted the ongoing struggles faced by residents, including issues with vermin and odors emanating from the plant.
Beveridge recounted a conversation he had with a CWS representative just six months prior, who indicated that while the project had encountered delays, it was still moving forward.
This sudden cancellation appears to contradict those earlier assurances, leaving local advocates and residents disheartened.
“To me, it was all moving forward,” Beveridge reflected. “Glacially slow, but that’s how everything at the city moves forward.”
image source from：oaklandside
