Hercules city officials and DeNova Homes have agreed to terminate their purchase and sales agreement for the long-vacant piece of property known as Parcel C.
City Manager Steve Duran said the city will pay the Concord developer $75,000 to cover a portion of DeNova Homes’ costs for work they did in preparing the 17-acre property for development.
At this point, the city still owns the land at the end of Linus Pauling Drive in western Hercules and will try to find another buyer.
Patch could not reach officials at DeNova Homes for comment.
The council approved a sales agreement for Parcel C with DeNova Homes in June 2012. The company drew up plans to build high-end apartments on the property.
However, complications from the governor’s 2011 decision to dissolve redevelopment agencies throughout the state created problems DeNova Homes and the city couldn’t overcome.
The property has been considered for development for more than a decade. In 2005, Walmart studied the possibility of building a store there but eventually decided against it.
The Hercules Redevelopment Agency purchased the parcel in 2009. The city has been trying to work out a deal with a developer ever since.