Located between the Coliseum Bay Area Rapid Transit trainstation and the Oakland International Airport, the campus will holdsome 1,500 employees when complete. It will allow thetelecommunications company to herd its 550 employees, hire a coupleof hundred more by the end of the year, and still have room to growwithout spreading out, which is what's happening now. While manyemployees are currently working in the firm's temporaryheadquarters at nearby 7677 Oakport St., Zhone employees are spreadout in several different locations.

Zhone acquired the 15 acres of land for the project from thecity of Oakland for $6 million in cash and 100,000 stock warrantsexercisable at $4 a share once the company goes public. Cityofficials estimate the land's market value at about $7.9 million,which means the stock must reach nearly $20 per share for the cityto get a fair price on the deal.