Lehman Brothers must pay $3.7 million to clean up failed Oak Knoll project
In mid-January, a U.S. Bankruptcy Court judge in California approved the plan for Lehman Brothers to pay $3.7 million for the abatement of hazardous materials at the former Oak Knoll Naval hospital site that was supposed to become a residential housing development with nearly 1,000 homes, a shopping area and a park. The project was abruptly stopped when the economy went bad and Lehman Brothers declared bankruptcy. The Oakland Fire Department declared the site a major fire hazard, and in June the city ordered the health and safety hazards to be abated.
The agreement approved by the judge calls for Lehman Brothers to pay $3.7 million to demolish the World War II era buildings, perform asbestos abatement, clean up debris and secure the vacant hospital building. Lehman Brothers has already released a separate $550,000 to pay for security guards, fences and goats to take care of the overgrown vegetation.
For the full story, go to KTVU.
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