The two sides entered a 90-day negotiation period on Dec. 5 andas part of the agreement, Ellis Partners was required to pay a$100,000 non-refundable deposit for the 90-day period. If the twosides do not reach an agreement by the end of three months, Elliscan extend the negotiating period and pay another $100,000, feesthat are applicable to rent during the construction period.

Ellis Partners was one of three firms to be considered lastspring when RFQs went out, according to Harold Jones, acommunications director for the Port of Oakland. The Port hadoriginally selected LCOR-WDG Ventures last May, but the companybacked out in August.

The negotiations between Ellis and the port will center ondevelopment rights on five land parcels that are south of thecurrent Jack London Square. The port is committing $5 million tothe project, as well as an additional $5 million for parking andother neighborhood improvements. Hal Ellis, founder of EllisPartners, says he will look at the project closely with possiblemodifications to the plan. But, he adds, he's confident that thetwo sides will reach an agreement that works for both.