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SAN FRANCISCO-City officials here want a planned 93-acre mixed-use redevelopment within the Hunter's Point Naval Shipyard here to run exclusively on renewable solar and hydroelectric power provided by the San Francisco Public Utilities Commission. The project calls for 1,600 residential units and 300,000 sf of commercial and retail space.

The city acquired the polluted former shipyard from the Navy and last year completed an estimated $350-million clean-up of the polluted property. The city awarded master development rights for the Shipyard in 1999 to Lennar Corp., and the power to decide the power source went with it. As a result, Lennar could decide to use power from Pacific Gas & Electric, which owns the distribution lines and until this spring had a power plant at the Shipyard.

Mayor Gavin Newsom described the city's plan as an attempt to help clean up the environmentally damaged Hunter's Point community, which suffers from some of the city's worst air pollution. City officials said it would ensure that power rates for the new development would be the same or lower than PG&E. PG&E did not immediately respond to a request for comment.

A day before the city's announcement, however, PG&E announced that as part of its effort to increase supplies of renewable power it has signed an agreement to purchase from Luz II LLC at least 500 megawatts of solar energy beginning in the spring of 2010. The energy would be produced from new power plants using a proprietary hybrid solar-gas design that meets the requirements of the California Renewables Portfolio Standard Program. The site for the plants has not been determined.

In May, the City of San Francisco revealed that it was in early negotiations with San Francisco State University to convert a 320,000-sf building at Hunter's Point Naval Shipyard into a center for new media and digital cinema. The four-story concrete building is one of the few structures not slated to be demolished as part of the redevelopment of the 500-acre shipyard.

The 66-acre first phase of the Shipyard development, which is underway, includes 1,200 homes, 25 acres of parks and open space and retail space including an African International Marketplace. The $100-million phase is slated for completion in late 2007.

Established as commercial shipyard in 1870, Hunter's Point Naval Shipyard was acquired by the Navy 11 days before Pearl Harbor. The Navy ceased operations there in 1974 and leased it to a commercial ship repair company that operated until 1986.

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