California Waste Solutions key player in Oakland FBI case loses land deal at former Army Base

Oakland officials terminated the lease with California Waste Solutions (CWS) for a recycling facility at the former Army Base, citing overdue documentation and unpaid fees totaling $425,000. The city had prioritized moving the recycling operations to address air quality concerns in the Lower Bottoms neighborhood, where residents have reported higher asthma rates. CWS executives had requested multiple extensions for the project, claiming the need for additional time due to funding issues and rising material costs. The termination was made public following the release of an air quality report that included a footnote about the deal's cancellation. CWS offered to pay the land's purchase price of over $8 million, but the city council did not pursue this option.

Additionally, federal prosecutors have charged CWS executives and former Mayor Sheng Thao in an alleged bribery scheme linked to the land deal. CWS has invested over $5 million in the project, including obtaining permits and conducting community outreach. Despite the setback, the company remains hopeful that Oakland officials will reconsider the project.