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Reasons for Selection of the Project Area <br />Background <br />The Project Area is located in the City of Stockton ("City"), San Joaquin <br />County ("County"), California. Located in western Stockton next to the Port of <br />Stockton East Complex, the Project Area is bounded by the Stockton Deep <br />Water Channel to the north, the San Joaquin River to the east and Burns <br />Cutoff to the south and west. The Project Area consists of approximately <br />1,433 acres, and nearly 6 million square feet of building space, which are <br />being used mostly as warehouses or transit sheds by the Port of Stockton <br />("Port"). Exhibit A-1 presents the boundaries of the Project Area. <br />History <br />The Project Area was first settled in 1850. After World War I, an Army camp <br />was established briefly to rehabilitate wounded war veterans, but later <br />purchased by the Navy and developed as a major supply depot for the <br />planned invasion of the Japanese Islands during World War II. In 1945, the <br />site was commissioned as the US Navy Supply Annex Stockton, and utility <br />structures were put in place to facilitate the operations of the Navy. In 1960, <br />the Naval Communications Station ("NCS") was moved from San Francisco <br />to Rough and Ready Island. In 1965, the Navy Supply Annex was <br />deactivated and control of the island was assigned to NCS Stockton. For the <br />next 31 years, the Island continued operating primarily as a military facility. <br />By 1996, military use of Rough and Ready Island was on the decline. In <br />February 1996, the Congress authorized the transfer of the Island to the Port <br />to facilitate expansion of maritime operations through a public benefit <br />conveyance. Later that year, NCS Stockton was officially closed. The <br />transfer of the former base occurred incrementally beginning in July 2000. At <br />that time, approximately 600 acres of the 1,433-acre base were deeded to <br />the Port. The remaining 800 acres were leased by the Navy to the Port due <br />to environmental concerns. <br />ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF STOCKTON <br />MAY 3, 2004 ROUGH AND READY ISLAND REDEVELOPMENT PROJECT <br />- A-1 - PRELIMINARY REPORT