The Navy rejected the city's latest offer of $6.5 million for the 180-acre base, mainly because the offer was made under the condition that the Navy returns the historic site to its original condition. This would include tearing down old buildings and destroying the sewer and utility systems. The cost of this procedure would be about four times the cost of the offer price.

The city's development plan included 380 market-rate single-family homes and 120 senior housing units, a retail center off Mountain Boulevard Recreational facilities including a creek side golf course, a Seneca Center facility to provide childcare, and open space on the steep slopes adjacent to Keller Avenue.

Instead of accepting this offer, the Navy has put the property up for sale, turning it over to the U.S. General Services Administration to list as a public auction, in which the city can bid on but will be given no special preference.