"The city of Alameda is on the verge of bankruptcy," the television commercial paid for by "Save Our City Alameda" warns. The red letters of word "bankruptcy" complements the commercial's black background.

"The city faces tens of millions of dollars in lawsuits," the voice on the commercial continues while the eye is treated to the words "tens of millions of dollars" in red.

A visit to Save Our City Alameda's Web site reveals activists David Howard, Arthur Lipow and Pat Bail among Alamedans endorsing the organization.

The city did not take long to react to the commercial, releasing a pair of statements on Tuesday, one day before the Alameda Reuse and Redevelopment Authority heard public comment on the current state of affairs at Alameda Point.

"This is simply not true," said city treasurer Kevin Kennedy in a prepared statement that disputed the claim that the city is on the verge of bankruptcy. Kennedy called Save Our City's claims "irresponsible and counter-productive."

"We are facing the same economic issues that other cities in the state are facing and addressing those issues through current budget-balancing actions and long-term planning," he said.

Kennedy pointed out that the city has reduced spending to accommodate the decrease in revenues. The city also placed a successful measure on the November 2008 ballot that raised the property transfer tax to help pay for general city services.

Interim finance director Ann Marie Gallant cited the increase in the property transfer tax as one of the factors designed to help the city weather the current economic cycle. Other dynamics include reductions in spending and anticipated budget cuts, Gallant said.

The commercial does not stop at its bankruptcy claim, but gets right to the "Point." The commercial claims that Alameda Point's developer, SunCal, is seeking a city-sponsored $700 million bailout (with bailout in red) to build houses at Alameda Point. The bailout would hike Alameda's debt to $1 billion, according to the commercial, which ends its message with, "Stop the bailout; say no to SunCal."

"SunCal has requested no such subsidy, nor has the city or the Alameda Community Improvement Commission (Alameda's redevelopment agency) offered any," said base reuse and community development manager Debbie Potter in a second prepared statement.

Potter reminded the community that the city council has adopted a policy that requires all redevelopment on the former Naval Air Station be fiscally neutral. "The city's General Fund, which pays for public safety and other services, cannot subsidize base redevelopment in any way," she said.

Mayor Beverly Johnson finds it "astonishing that a small group of people would choose to air a commercial that makes false and easily disproved claims about their own city just to try to block an important redevelopment project. This is a time to work together, not to foster dissent."

The Alameda Reuse and Redevelopment Authority discussed SunCal's land plan at last night's meeting after the Alameda Sun went to press. The meeting provided an opportunity for members of the authority and the public to discuss this plan.

Contact Dennis Evanosky at