City officials seized the building from O'Neil and Martin in 1998 after declaring it an eyesore, exercising its right of eminent domain and claiming the building actually had negative value because of earthquake damage. Eminent domain refers to a public entity's right to demand to buy private property for public use.

The city of Oakland had deposited $1 with the state treasury to buy the building, a source of downtown controversy with neighbors who were displeased with its appearance. In March, the Oakland City Council agreed to sell the building, located at the intersection of 21st and Franklin, to developer Ted Dang. Dang plans to rehabilitate the facility and turn it into the proposed $16 million Oakland Trade Center, which would have 54 live-work units and 120 office condominiums.

But the sale to Dang is not yet finalized, according to deputy city attorney Richard Illgen. Illgen has said that the city may still file an appeal, settle for a lesser amount or simply return to the building to its former owners.

San Francisco developer Hal Ellis had also asked the city earlier this year to sell him the Bermuda Building for $100,000 this year. Ellis planned to demolish it at a cost of $3.4 million, then turning around and building a 12-story, $47-million office building on the site.

The building is actually comprised of two attached structures: a six-story facility dating back to 1958 and a 10-story building built in 1962. It was damaged in the 1989 Loma Prieta earthquake and has been vacant for about five years.