$25m deal over ex-Navy base land

The Navy had previously transferred 549 acres to Tri-Town, 324 of which are under development while the remainder are being kept as open space. Tri-Town says it needs the 800-plus acres to complete SouthField (www.southfield.com) - a mammoth project that includes a mix of houses, townhomes, apartments, retail shops, restaurants, commercial space, a recreation complex, movie studios, and an 18-hole golf course.

“We did settle on the price,’’ said Kevin R. Donovan, Tri-Town’s chief executive officer.

Under the terms of the deal, Tri-Town would pay the Navy $2 million at the closing, then another $10 million over a period of 10 years, along with 5 percent of the real estate sales (estimated to be worth $13 million), according to Donovan.

He said the deal is contingent on how the Navy plans to finish cleaning up contaminated portions of the old air base, which has been closed for more than a decade.

Tri-Town and SouthField’s developers originally hoped the Navy would transfer the land at no cost.

This latest proposal was structured like the deal used in the development of Treasure Island in San Francisco, said Donovan.

It was the result of months of talks with the Navy that culminated with a lengthy meeting at the Pentagon on July 13. After spending five hours haggling over details, the key decision-makers emerged with the $25 million deal that would help bring SouthField closer to completion.

“This is huge. Obviously it took a lot of effort,’’ said Donovan. If all goes according to plan, a purchase-and-sale agreement could be signed as early as Nov. 15, he said.

The master developer behind the project - LNR Property Corp. - believes the deal will go through by the end of the year.

“This is a very positive development for SouthField, the South Shore, and the state of Massachusetts,’’ said Kevin Chase, regional vice president of LNR Property Corp., in a prepared statement.