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SAN FRANCISCO-Focal Corp.’s new majority owner, United Native Depository Corp., has acquired a majority interest in Navillus Associates LLC, one of only two companies bidding to be master developer of Treasure Island, the naval base in San Francisco Bay. If the Treasure Island Development Authority selects Navillus, it is intended that Focal will be named the master developer for that project.

The TIDA is expected to make its selection for the master developer in 2002. Ronald Sullivan, President of Navillus, tells GlobeSt.com the company hopes to leverage UNDC’s American Indian minority status and Focal’s ability to attract the necessary capital to gain a competitive advantage in the bidding process.

Treasure Island, which currently serves as a Naval Base for the U.S. government, is considered by many as the most desirable and prominent piece of real estate in the country. The redevelopment project, estimated at $2.5 billion, is aimed at turning the island into a self-sustaining resort city with hotels, restaurants, malls, sport complex, technology center and its own power plant. “The installation of the generating sets on the island is beneficial to the city because excess power can then be fed into the city’s grid,” says Sullivan.

United Native Depository is a financial holding company owned by Native Americans and organized under the laws of the jurisdiction of the Navajo Nation. The company’s objective is to increase the economic well being of the indigenous population. Focal is traded on the NASD’s Over-the-Counter Bulletin Board. According to its most recent filing with the SEC, the company’s “current plan of operations is to acquire real estate in the Western United States for development.”

United Native Depository entered into its deal for a majority of Focal in May, according to records filed with the SEC. According to the documents, Focal handed over 20,183,792 shares of its common stock, or 51% of the company, “in exchange for the following consideration: cash payment of $10,000; execution of a promissory note in the amount of $300,000, and; the execution of a Management and Development Agreement, pursuant to which the Company will receive as compensation, 25% of the net profits of the Cabazon Power Plant facility for seven years beginning from the commencement date of operations scheduled for September 2001.”

In SEC documents, focal pegged their stock issuance at $10 million, or about 50 cents a share. On news of its possible master developer status, however, it’s share price shot up 16 cents to $1.15 Tuesday, up from a 52-week low of 6 cents a share and down from a 52-week high of $2.75.

United Native Depository and Focal intend to build 500-megawatt electric generating stations on Indian Reservations powered by natural gas. Construction of the first of two plants to be started in 2001 is anticipated to begin in mid summer. Focal will be the prime developer of the program. Additional plants of 49.5 megawatts are also planned.

Focal also has acquired several tracts in Rosamond, California. Plans are to develop the largest parcel, which is 80 acres into a recreational vehicle park with 525 recreational vehicle pads for sale or rent, a fresh water lake with beaches and other recreational oriented facilities. Engineering and architectural work has been temporarily suspended until additional funds are available.

The company says it is in various stages of negotiation on other properties in California and Nevada. As its finances improve, and as appropriate opportunities arise, the company says it plans to invest in existing shopping centers and strategically located vacant land suitable for the development of shopping centers.

The company is also investigating the development of truck stops and other commercial buildings, such as motels and office buildings, at strategic locations along interstate highways and at the U.S. border with Mexico. The company anticipates that such options or contracts would be subject to negotiating pre-building leases with major retail tenants.

Currently, Focal does not own or manage any shopping centers or truck stops, and has not previously developed any recreational vehicle parks or power plants. Company executives, however, have experience in the development, ownership, and management of real estate, and Focal sys it plans to use experienced consultants to locate, analyze, and develop properties.

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