Deal for Purchase of Berkeley Post Office Fizzles; Police Clear Encampment

The proposal by Berkeley developers Hudson McDonald to buy the downtown Berkeley Post Office has fallen through after they were unable to reach agreement with the Post Office on a deal.

Meanwhile, police from the U.S. Postal Inspection Service prompted an orderly clearance of parts of the makeshift encampment at Berkeley’s Main Post Office Thursday morning. Protesters, who call themselves Berkeley Post Office Defenders, and a homeless advocacy group, First They Came for the Homeless, have been camped around the building for four weeks.

According to a spokesperson for the U.S. Postal Inspection Service, officers provided protesters with a list of federal regulations and criminal statutes that prohibit the encampment. No arrests were made.

By lunchtime today, protesters were packing their tents and property on the Milvia Street side of the building. On the front steps of the building, on Allston Way, there was no sign of dismantling tents and other structures.

“The Postal Inspection Service is committed to providing a safe environment for its customers and its employees,” said David Guerra, the PIS spokesman. “We’re giving them as much time as possible to clear their property.”

Thursday morning from around 9:15 a.m., activists put out calls, via email and Twitter, for protesters to go to the post office at 2000 Allston Way. In an email blast, Mike Wilson wrote: “Please come down to the downtown Berkeley Post Office immediately! The Berkeley Post Office Defenders are being forcibly removed by a few cops. If enough people show up right away… we can still prevent the theft of our public post office.”

Guerra said that PIS officers will remain on site until it is secure.

The U.S. Postal Service announced plans to sell the building in June 2012, and officially placed it on the market in April 2013. Berkeley politicians have been unanimous in opposition to the sale and a vocal community group, Save the Berkeley Post Office, is fighting to keep the building as a post office.

Last month Berkeleyside revealed that local developer Hudson McDonald was negotiating to buy the building with a view to rehabilitating it and then leasing it to retailers, retaining an area for post office services. Yesterday, Hudson McDonald exercised its option to drop the purchase, according to Antonio Rossmann, special counsel to the city of Berkeley. Rossmann said he received notification from the U.S. Attorney's Office that Hudson McDonald had exercised its option to cancel the sale that had been set to close on Dec. 22.

Chris Hudson, principal at Hudson McDonald, said his company had been unable to reach agreement with the Post Office by the time the contract reached its expiration date. Hudson said they asked the Postal Service for an extension, but the service declined, saying they had “things to figure out.” Asked if he was disappointed, Hudson said he was hopeful they might be able to get back at the negotiating table. “Maybe it’s not over,” he said.

This story was updated with new information after a conversation with Chris Hudson of Hudson McDonald.

KQED News Associate Berkeleyside is an independently owned news website. Click here if you would you like to receive the latest Berkeley news in your inbox once a day for free with Berkeleyside's Daily Briefing email.